HomeMarket NewsSobha shares jump over 6% after board approves ₹2,000 crore rights issue; Check details here
Sobha shares jump over 6% after board approves ₹2,000 crore rights issue; Check details here
Sobha's rights issue will open on June 28 and close on July 4.
The board of Bengaluru-based real estate developer Sobha Ltd. has approved raising up to ₹2,000 crore through a rights issue of shares.
The company intends to issue 1.21 crore rights equity shares each on a partly-paid basis through which it plans to raise ₹2,000 crore, assuming full subscription and payment of the call monies.
The price of the rights issue has been fixed at ₹1,651 per rights equity share, which is a discount of 20% compared to the stock's closing price on Wednesday.
Shareholders of Sobha will be entitled to receive six rights equity shares for every 47 shares that they hold as of the record date, which has been fixed as June 19, 2024.
On applying to the rights issue, shareholders will have to pay a premium of ₹820.5 per share of face value worth ₹5 each. Subsequently, the balance amount will have to be paid in not more than two subsequent calls on or before December 31, 2025.
Sobha's fundraising plans come right after another Bengaluru-based peer Prestige Estate is planning an Initial Public Offer (IPO) of its hospitality unit. The company called capital raising "a normal activity" in the real estate business.
Shares of Sobha are trading 5.3% higher on Thursday at ₹2,176.
The stock has already doubled in 2024 so far, rising as much as 102% as of Wednesday's closing session. It is one of the top performers on the Nifty Realty Index so far this year.
Over the last 12 months, shares of Sobha have more than tripled, gaining as much as 268%. The stock is also nearing ₹20,000 crore in market capitalisation, having closed at ₹2,070 on Wednesday.
The company intends to issue 1.21 crore rights equity shares each on a partly-paid basis through which it plans to raise ₹2,000 crore, assuming full subscription and payment of the call monies.
The price of the rights issue has been fixed at ₹1,651 per rights equity share, which is a discount of 20% compared to the stock's closing price on Wednesday.
Shareholders of Sobha will be entitled to receive six rights equity shares for every 47 shares that they hold as of the record date, which has been fixed as June 19, 2024.
Sobha's rights issue will open on June 28 and close on July 4.
On applying to the rights issue, shareholders will have to pay a premium of ₹820.5 per share of face value worth ₹5 each. Subsequently, the balance amount will have to be paid in not more than two subsequent calls on or before December 31, 2025.
Sobha's fundraising plans come right after another Bengaluru-based peer Prestige Estate is planning an Initial Public Offer (IPO) of its hospitality unit. The company called capital raising "a normal activity" in the real estate business.
Shares of Sobha are trading 5.3% higher on Thursday at ₹2,176.
The stock has already doubled in 2024 so far, rising as much as 102% as of Wednesday's closing session. It is one of the top performers on the Nifty Realty Index so far this year.
Over the last 12 months, shares of Sobha have more than tripled, gaining as much as 268%. The stock is also nearing ₹20,000 crore in market capitalisation, having closed at ₹2,070 on Wednesday.
(Edited by : SonalMohan Jadhav)
First Published: Jun 13, 2024 8:10 AM IST
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