Sobha hits all-time high on rights issue plans

Shares of real estate developer Sobha Ltd jumped nearly 8 per cent in trade on Thursday, after the company’s board approved a proposal to raise up to ₹2,000 crore through a rights issue.

Shares of Sobha on Thursday registered an hit an all-time high of ₹2,219, after the company’s board approved issuing shares worth ₹2,000 crore through a rights issue.

In a notification to the stock exchanges, the realty major said that it plans to issue 1.2 crore shares on rights basis on a partly-paid basis at ₹1,651 apiece, which was a 20 per cent discount to the stock’s previous close of ₹2,062.50 on Wednesday.

Shareholders are entitled to receive six shares for every 47 fully paid-up equity shares of the company as on the record date, June 19.

The stock finally closed day at ₹2,165.55, up 4.78 per cent, and the market capitalisation zoomed to ₹20,423.63 crore.