Sobha Ltd is a residential and commercial project company that was recently in the news for touching its 52-week High on the Bombay stock exchange market. This increase in share price follows the approval of a rights issue with a maximum amount of ₹2,000 crore by the company’s board.
Rights Issue Details
Sobha aims to offer not more than 12,107,981 partly paid-up ordinary equity shares of face value ₹10 each. The offer price is ₹1,651 per share, ₹1,641 of which is a premium to the face value of ₹10 per share. The rights issue will commence on 28th June 2024 and end on 4th July 2024.
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Company Overview
Sobha has maintained good performance; it has accomplished construction of 136.25 million sq ft spread out in 27 cities in India. Currently, it has 38.36 million square feet of developable area for projects in different construction phases. The company’s total income in the financial year 2023-24 was ₹3,217.8 crore and the EBITDA was at ₹ 397.9 crore.
Vision and Mission of Sobha
Sobha Realty is an international luxury real estate developer and a world-class organization dedicated to creating sustainable communities. Sobha was started in 1976 by PNC Menon, a pioneer in the field of real estate, and has expanded its operations globally with investments and projects in the UAE, Oman, Bahrain, Brunei, and India.
Their vision is to be the best real estate organization not only in the region but in the entire world, executing cutting-edge international projects and changing people’s perception of quality. Their mission is to make clear that there will be no compromises for quality. Sobha Realty has always strived to break barriers and set higher benchmarks of excellence while contributing to the improvement of society as a whole.
Financial Snapshot
Profit in FY24 was ₹49.1 crore against ₹104.2 crore in the previous year. Net debt decreased from ₹1,639.6 crore (March 2023) to ₹1,262.2 crore (March 2024). Sobha achieved gross sales bookings of 6.1 million square feet of area. The new project launches also helped it to achieve ₹6,640 crore in sales.
Upcoming Commercial Developments by Sobha in Dubai
Sobha Realty is going to develop two super projects in Dubai with an investment of Dh24 billion ($6.53 billion) to expand its presence in the UAE real estate sector. These projects are Sobha 1 and Hartland 2. Both will be developed adjacent to the Sobha Hartland master development in MBR City. The two developments will collectively provide nearly 9,900 apartments over 220 acres, and actual construction will start in 2021.
Sobha Realty’s focus on quality services and integrated real estate solutions will allow it to remain competitive in the market. Also on the current portfolio of Sobha Realty is Sobha Hartland, a freehold community offering luxurious living in a land area of eight million square feet in the heart of Dubai.
Conclusion
Sobha continues to be hopeful of demand and intends to commence 9 million sq ft of fresh projects in FY25. The markets that have high sales volume include Bengaluru, Kerala, and NCR (Gurugram). Sobha’s rights issue looks to strengthen its growth path and investors are keenly observing this step.
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