Sobha: Rights Issue to Open on June 28 at Rs.1,651 per Share

Sobha Limited was incorporated in 1995, It is a real estate developer engaged in the construction to operations of townships, housing projects, commercial premises, and other related activities. The Company is also engaged in manufacturing activities related to interiors, glazing and metal works, and concrete products. 

Sobha Board Approves Right Issue

Shares of the real estate company Sobha saw a significant surge, rising over 7.5% to reach an intraday high of Rs 2,219 on the Bombay Stock Exchange (BSE) during Thursday’s trading session. This upside surge follows the company’s announcement that its board of directors has approved a substantial Rs 2,000 crore rights issue. The rights issue is priced at Rs 1,651 per share, which represents a 20% discount compared to the stock’s closing price on the previous day, Wednesday. This strategic move is anticipated to strengthen the company’s financial position and support its future growth initiatives.

Right Issue ratio

Sobha shareholders will receive six rights equity shares for every 47 shares held as of June 19, 2024. The rights issue, priced at Rs 1,651 per share, opens on June 28 and closes on July 4, aiming to raise Rs 2,000 crore through the issuance of 1.21 crore shares.

Conclusion: Sobha’s announcement of a Rs 2,000 crore rights issue has positively impacted its stock, driving shares up by over 7% to Rs 2,220. Shareholders will receive six rights equity shares for every 47 held as of June 19, 2024, at a discounted price of Rs 1,651. The rights issue, running from June 28 to July 4, aims to bolster Sobha’s financial position and support its growth initiatives, reflecting a strategic effort to attract robust shareholder participation and secure substantial capital infusion. The stock after paring some of its gains currently trades at Rs.2,160 a piece.

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.