Sobha shares climb over 7% after board approves Rs 2,000 crore right issue
Sobha surged over 7% to a day's high of Rs 2,219 on the BSE during Thursday's trade, following the board's approval of a Rs 2,000 crore rights issue. The rights issue price is set at Rs 1,651 per equity share, which represents a 20% discount from the previous day's closing price of Rs 2,063.9 per share.
The rights issue will open on June 28 and will close on July 4.
The realty firm said six rights equity shares will be issued for every 47 fully paid-up equity shares of the company held by the eligible equity shareholders.
At 10:43 am, Sobha's stock was trading 6% higher at Rs 2,186.7 on the BSE. The stock has delivered impressive returns, rallying over 110% year-to-date and surging 290% in the past year.
However, in Q4FY24, the realty firm reported an 86% decline in consolidated net profit to Rs 7.02 crore on lower income. Its net profit stood at Rs 48.57 crore in the year-ago period.
Total income also fell to Rs 791.25 crore in the fourth quarter from Rs 1,240.14 crore in the corresponding period of the previous year.
During 2023-24, net profit declined to Rs 49.11 crore from Rs 104.20 crore in the preceding year. Total income fell to Rs 3,217.88 crore from Rs 3,402.43 crore in 2022-23.
As per Trendlyne data, the average target price of the stock is Rs 1,654, a downside of 24% from the current market prices. However, the consensus recommendation from 14 analysts for the stock is a 'Hold'.
In technical terms, the relative strength index (RSI) of the stock is currently at 62.9. The RSI below 30 is considered
