Sobha shares gain nearly 8% on board nod to ₹2,000 crore rights issue

In a stock exchange notification, issued after market hours on Wednesday, Sobha informed that the company plans to sell 1.2 crore shares in its rights issue on a partly-paid basis.

The shares in the rights issue will be offered at ₹1,651 apiece, which is at a 20% discount to the stock’s previous close of ₹2,062.50 on Wednesday.

Sobha announced that 6 rights equity shares would be issued for every 47 fully paid-up equity shares of the company held by the eligible equity shareholders as on the record date. Sobha has fixed the record date for the rights issue as June 19.

The rights issue will be open for subscription for investors from June 28 and close on July 4.

After the rights issue, Sobha’s outstanding equity shares would increase to nearly 10.7 crore from 9.48 crore equity shares earlier (assuming full subscription).

After the announcement, Sobha’s share price jumped as much as 7.6% on Thursday to hit an intraday high of ₹2,220 apiece on the NSE. Notably, the stock price has gained more than 32% in the past month and has doubled in calendar year 2024 so far.

The company had first announced the rights issue at its meeting of the board held on January 22, 2024, approving the offer and issuance of equity shares of the company for an amount not exceeding ₹2,000 crore.