Sobha board approves issuance of equity shares of up to Rs 2,000 crore via rights issue

The board of directors of Sobha has approved the issuance of equity shares of the company for an amount of up to Rs 2,000 crore by way of the rights issue, the company informed through a stock market disclosure today, June 12.

"A total number of rights equity shares and rights Issue size: 12,107,981 rights equity shares each on the partly-paid basis for an amount up to Rs 2,000 crore (assuming full subscription and payment of call monies)," Sobha said in a regulatory filing.

The company has set the rights issue price at Rs 1,651 per rights equity share including a premium of Rs 1,641, it informed.

The rights issue will open on June 28 and will close on July 4, 2024.

Rights entitlement ratio

The company will issue six rights equity shares for every 47 fully paid-up equity shares of the company held by the eligible equity shareholders of the company, as of the record date. 

A look at Sobha's Q4 earnings

Sobha posted an 86 per cent decline in consolidated net profit to Rs 7.02 crore for the quarter that ended March 2024 on lower income. Total income also fell to Rs 791.25 crore in the fourth quarter from Rs 1,240.14 crore in the corresponding period of the previous year, according to a regulatory filing. Read more 

Meanwhile, shares of Socha closed at Rs 2,063.9 each, down 0.11 per cent today, June 12 on BSE.