Sobha shares surge over 5% after announcing rights issue

Shares of Sobha Limited, a prominent real estate firm based in South India, rose by more than 5 percent on June 13. This increase followed the company’s announcement that its board had approved the offer and issuance of equity shares worth Rs 2,000 crore through a rights issue. The rights issue is priced at Rs 1,651 per equity share, offering a 25 percent discount.

The rights issue will be open from June 28 to July 4. Eligible shareholders will receive six rights equity shares for every 47 fully paid-up equity shares they hold.

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As of 11:06 AM the shares were trading 5.36% higher at ₹2,173.00 on NSE.

For the quarter ended March 2024, Sobha’s net profit fell 85 percent year-on-year to Rs 7 crore. Despite a 37 percent increase in revenue from operations to Rs 763 crore, the total income dropped 36 percent to Rs 791.25 crore, missing analysts’ expectations. The company’s consolidated EBITDA also fell by 46.5 percent year-on-year to Rs 62.1 crore.

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