Sobha Stock Surges 6% As Board Approves Rights Issue

The stocks of real estate firm Sobha climbed more than 6 per cent in the Thursday trading session after the board declared Rs 2,000 crore of rights issue.

Sobha stock traded at Rs 2,183 with 5.8 per cent gain in the morning session on the National Stock Exchange (NSE). 

“This is further to the meeting of the Board held on 22 January 2024, approving the offer and issuance of equity shares of the company for an amount not exceeding Rs 2,000 crore, by way of a ‘rights issue’, in accordance with the Companies Act, 2013 and the rules made thereunder, the Sebi Regulations, 2018, as amended, other applicable laws and our prior intimation dated 08 June 2024,” stated Sobha in a exchange filing. 

The company will issue 1,21,07,981 rights equity shares each on a partly-paid basis for an amount up to Rs 2,000 crore (assuming full subscription and payment of call monies).

The price for the rights issue is set at Rs 1,651 per rights equity share (including premium of Rs 1,641 per rights equity share) shall be payable on application.

The rights issue will open on 28 June and is scheduled to close on 04 July. Whereas, the rights entitlement ratio is set at 6 shares for every 47 fully paid-up equity shares of the company held by the eligible equity shareholders of the company, as on the record date.

Notably, in terms of stock performance Sobha stocks more than doubled with 120 per cent returns year-to-date (YTD), outperforming the 43 per cent YTD returns of Nifty Realty.