Sobha Share Price Updates: Sobha stock ends higher as board approves ₹2,000-cr rights issue, shares jump 5%

The company witnessed a surge in its share prices, reaching an all-time high, following the approval from the company’s board for the issuance of equity shares worth Rs 2,000 crore through a rights issue. Sobha shares soared by 7.5% to Rs 2219 compared to the previous closing price of Rs 2063.90 on the BSE. This development propelled the market capitalization of the firm to Rs 20,423.63 crore.

Vinod Jhaveri, independent analyst, Pure Technicals, said, “Shobha Ltd has been on a roll since it crossed the multi year highs at 1060 and since have doubled to 2220. The company have announced Rights at 1650 which again is benefiting the shareholders. The stock still have some upmove left in coming days and can head to 2350/2500.”

The company plans to launch about 9 million square feet of new projects in FY25, with an estimated gross development value of ₹120 billion. This will bring the total inventory pipeline to 16.5 million square feet.

About a month back, Sobha reported a slow quarter, with sales reaching ₹15 billion, which is a 2.8% increase from last year but a 22.9% drop from the previous quarter. The volume of sales was 1.5 million square feet, down 9.4% year-on-year and 19.5% quarter-on-quarter.

Sobha stock is trending after it announced that the board cleared ₹2,000-crore rights issue.

The price of the rights issue has been fixed at ₹1,651 per equity share, a discount of 25 percent, the firm said. The issue will open on June 28 and will close on July 4.