Sobha Limited to Launch ₹2,000 Cr Rights Issue at ₹1,651 per Share

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Synopsis:

Sobha Ltd. plans to raise ₹2,000 crore through a rights issue priced at ₹1,651 per share, offering six shares for every 47 held. The issue opens June 28 and closes July 4, 2024. The issue is raised amidst challenging market conditions in the sector.

Sobha Ltd Rights Issue News Today

Sobha Limited, a prominent Bengaluru-based real estate developer, has approved a rights issue to raise up to ₹2,000 crore amidst challenging market conditions and recent sector developments.

Exlpore:Sobha Limited Share Price

Details of the Rights Issue

Sobha Ltd. intends to issue 1.21 crore rights equity shares, each priced at ₹1,651 on a partly-paid basis. This pricing represents a 20% discount compared to the stock's closing price on the day before the announcement.

Entitlement and Timeline

Shareholders as of the record date, set as June 19, 2024, will receive six rights equity shares for every 47 shares they hold. The rights issue will open on June 28, 2024, and close on July 4, 2024.

Payment Terms

Upon application, shareholders must pay ₹820.5 per share (₹5 face value) as a premium. The remaining amount will be payable in up to two subsequent calls on or before December 31, 2025.

Sector Updates

Sobha's decision comes amidst strategic moves within the real estate sector, with peers like Prestige Estate preparing for significant capital raises, such as an upcoming IPO for its hospitality unit. Sobha emphasised that such fundraising activities are routine within the industry.

Financial Performance

For the quarter ending March 2024, Sobha reported an 86% decline in consolidated net profit to ₹7.02 crore, attributed to reduced total income, which fell from ₹1,240.14 crore to ₹791.25 crore year-on-year.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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