Realty firm Sobha Ltd will launch its rights issue on Friday to raise up to Rs 2,000 crore. The funds will be used mainly to reduce debt, purchase land and machines, and cover construction costs for its various projects. The issue will close on July 4.
On June 12, the Board approved the terms of the rights issue. Sobha Ltd, based in Bengaluru, will issue 1,21,07,981 equity shares on a partly-paid basis. The price for the rights issue is set at Rs 1,651 per share, which includes a premium of Rs 1,641 per share.
The rights entitlement ratio has been fixed at 6 rights equity shares for every 47 fully paid-up equity shares held by eligible shareholders as of the record date.
The company plans to use Rs 905 crore for repaying or prepaying certain borrowings. Another Rs 212.35 crore will be allocated to fund project-related expenses for ongoing and upcoming projects. Additionally, Rs 210 crore will be used to purchase equipment and machinery, and Rs 658.58 crore will go towards buying land parcels.
This rights issue aims to strengthen Sobha Ltd’s financial position and support its growth and development plans.
