Sobha Limited’s board approved the offer and issuance of equity shares of the company for Rs 2,000 crore through a rights issue, the real estate firm said in an exchange filing on June 12.
The rights issue price was set at Rs 1,651 per equity share, a discount of 25 percent, the statement said. The issue will open on June 28 and will close on July 4, according to the statement.
The Bengaluru-based real estate company’s stock, which has a face value of Rs 10, closed June 12 at Rs 2,063.9, down 0.11 percent on BSE.
The firm said six rights equity shares will be issued for every 47 fully paid-up equity share of the company held by the eligible equity shareholders.
The net profit of the company fell 85 percent on-year to Rs 7 crore for the quarter ended March 31, with subdued topline as well as operating numbers, the developer reported in May. Its revenue from operations, however, grew 37 percent year-on-year to Rs 763 crore.
Sobha's total income also fell 36 percent on-year to Rs 791.25 crore from Rs 1,240.14 crore. The number missed Street's estimates as Bloomberg had estimated a profit of Rs 52.1 crore for the quarter, while revenue was pegged at Rs 1,180.8 crore.
The realty major's consolidated EBITDA also fell on-year, plunging 46.5 percent to Rs 62.1 crore as against Bloomberg's estimate of Rs 143.6 crore.
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