Block Deal in Sobha Ltd: Key Details and Implications

On Friday, July 26, a significant transaction took place involving Sobha Ltd, where 47.4 lakh equity shares, representing 5% of the company’s equity worth Rs 865 crore, changed hands at Rs 1,825 per share in a block deal. The official buyers and sellers of this substantial transaction have not been disclosed yet.

Involvement of Anamudi Real Estate LLP

Reports suggest that Anamudi Real Estate LLP, wholly owned by the Godrej family, intended to sell 5% of its 9.9% stake in Sobha Ltd through this block deal. This sale, valued at approximately $100 million, was anticipated to be executed at a 6% discount to the current market price (CMP).

Role of Kotak Securities

Kotak Securities served as the sole banker facilitating this block deal. Post-sale, Anamudi Real Estate LLP will be subject to a 90-day lock-in period, preventing any further sales of Sobha shares during this time.

Sobha Ltd’s Financial Performance

In the fourth quarter, Sobha Ltd reported a significant decline in its financial performance. The consolidated net profit plummeted by 86% to Rs 7.02 crore, compared to Rs 48.57 crore in the same period last year. Additionally, total income dropped from Rs 1,240.14 crore to Rs 791.25 crore.

Future Plans and Expansion

Despite the recent financial downturn, Sobha Ltd has ambitious plans for the upcoming fiscal year. The company plans to roll out a minimum of nine million square feet through 10 to 11 projects in Bengaluru, Gurugram, Tamil Nadu, and Kerala between April and March of the 2024-25 fiscal year.

Sobha Ltd: A Leading Real Estate Developer

Bengaluru-based Sobha Ltd is one of India’s largest real estate developers. The company derives around 60% of its total sales from the Bengaluru region and also operates in nine other cities, including Pune, Delhi National Capital Region, and Chennai.

Market Reaction to the Block Deal

Following the block deal announcement, Sobha Ltd’s shares experienced a decline of 3.19%, closing at Rs 1,803 on Friday. The stock had opened at Rs 1,829 and hit an intraday low of Rs 1,778.75 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.