6:47 Rights Issue Announcement: This Realty Company Declares Rights Issue Worth Rs 2000 Crore; Stock Gains Over 280 per cent in Just 1 Year

The Rights Issue will commence on Friday, June 28, 2024, and conclude on Thursday, July 4, 2024.

Sobha Limited, a prominent real estate developer established in 1995, has recently disclosed its plans for a Rights Issue, approved by the Board on June 12, 2024. This strategic move aims to raise capital for further expansion and operational endeavours.

Here are the essential terms of the Rights Issue:

Rights Equity Shares and Issue Size: The company plans to issue 12,107,981 Rights Equity Shares, each on a partly paid basis, amounting to Rs 2,000 crore assuming full subscription and payment of call monies.

Issue Price: Each Rights Equity Share is priced at Rs 1,651, inclusive of a premium of Rs 1,641 per share, payable on Application.

Rights Issue Period: The Rights Issue will commence on Friday, June 28, 2024, and conclude on Thursday, July 4, 2024.

Outstanding Equity Shares: Prior to the Rights Issue, Sobha Limited had 94,845,853 equity shares outstanding. Post the Rights Issue, assuming full subscription and payment of call monies, the total outstanding equity shares will be 106,953,834.

Rights Entitlement Ratio: Eligible equity shareholders of the company will receive 6 Rights Equity Shares for every 47 fully paid-up equity shares held by them as of the record date.

Sobha Limited's diverse portfolio encompasses the construction and operation of townships, housing projects, commercial premises, and related activities. Additionally, the company is involved in manufacturing operations, producing interiors, glazing and metal works, and concrete products.

This Rights Issue underscores Sobha Limited's commitment to strengthening its financial position and pursuing strategic initiatives to drive growth in the competitive real estate market. Shareholders and investors will keenly observe the developments surrounding this significant capital-raising endeavour.

Share and Financial Performance of Sobha Limited

Today shares of this Large-Cap realty company are trading at around Rs 2182 per share, representing a rally of around 5.72 per cent. The current market capitalization of the company stands at Rs 20,695 crore. Additionally, the stock has delivered a multibagger return of around 288 per cent in just 1 year.

As per the Quarterly Results, in the fourth quarter of FY24, the company recorded a revenue of Rs 762.86 crore. The operating profit for Q4 FY24 stood at Rs 62.07 crore, resulting an operating profit margin of 8.14 per cent. The net profit for Q4 FY24 was Rs 7.03 crore.

Investors must keep this stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.