Sobha Up Despite Rights Issue: 25% Discount, Grab a Deal?
Sobha, a real estate company, is raising funds (Rs 2,000 crore) by offering existing shareholders discounted rights to buy new shares (25% discount at Rs 1,651). This comes after a year of impressive stock growth (283%).
Sobha Up Despite Rights Issue
Shares of Sobha Ltd, a South-based real estate company, have been making headlines following the board’s approval for a rights issue to raise Rs 2,000 crore. On June 12, Sobha shares dipped slightly by 0.11%, closing at Rs 2063.90 compared to the previous close of Rs 2066.15 on the BSE. The company’s market capitalization dropped to Rs 19,575 crore, with 2,898 shares traded, resulting in a turnover of Rs 59.58 lakh on the BSE.
Over the past year, Sobha’s stock has surged by 283% and has increased by 101.66% in 2024. The stock reached a 52-week high of Rs 2174 on June 10, 2024, and a 52-week low of Rs 521.80 on June 26, 2023.
The stock has a one-year beta of 1, indicating average volatility. Technically, Sobha’s relative strength index (RSI) is at 63, suggesting the stock is neither overbought nor oversold. The shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages.
The rights issue is priced at Rs 1,651 per equity share, offering a 25% discount. It will be open from June 28 to July 4, with six rights equity shares available for every 47 fully paid-up equity shares held by eligible shareholders.
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