Sobha stock jumps 5% after board approves Rs 2,000-cr rights issue

Six rights equity shares will be issued for every 47 fully paid-up equity share of the company held by the eligible equity shareholders, said Sobha.

Shares of South-based realty firm Sobha jumped over 5 percent on June 13 after the company board greenlit the offer and issuance of equity shares for Rs 2,000 crore through a rights issue. The price of the rights issue has been fixed at Rs 1,651 per equity share, a discount of 25 percent, the firm said.

The rights issue will open on June 28 and will close on July 4. Sobha 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.

At 9:27 am, Sobha shares were trading 4.5 percent higher at Rs 2,155.25 on the National Stock Exchange (NSE). The stock was trading a few points shy of its 52-week high of Rs 2,176.45, hit on June 10, 2024.

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Market cap of the firm rose to Rs 20,402 crore. A total of 1 lakh shares of the firm changed hands on BSE and NSE combined so far in the day.

For the quarter ended March 2024, Sobha's net profit fell 85 percent on-year to Rs 7 crore. The real estate developer reported subdued topline as well as operating numbers. 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 in the year-ago period. 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.

Also Read | Sobha announces Rs 2,000-cr rights issue at Rs 1,651 per share

The realty major's consolidated EBITDA plunged 46.5 percent YoY to Rs 62.1 crore as against Bloomberg's estimate of Rs 143.6 crore.

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