Shares of realty firm Sobha surged over 7 per cent 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 company intends to issue 1.21 crore rights equity shares each on a partly-paid basis through which it plans to raise Rs 2,000 crore, assuming full subscription and payment of the call monies.
The price of the rights issue has been fixed at Rs 1,651 per rights equity share, which is a discount of 20 per cent compared to the stock’s closing price on Wednesday.
Shareholders of Sobha will be entitled to receive six rights equity shares for every 47 shares that they hold as of the record date, which has been fixed as June 19, 2024.
Sobha’s rights issue will open on June 28 and close on July 4.
On applying to the rights issue, shareholders will have to pay a premium of Rs 820.5 per share of face value worth Rs 5 each. Subsequently, the balance amount will have to be paid in not more than two subsequent calls on or before December 31, 2025.
However, in Q4FY24, the realty firm reported an 86 per cent 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 per cent 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 oversold, and above 70 is overbought, Trendlyne data showed. Additionally, the MACD is at 65.7, which is above its center and signal line, this is a bullish indicator.
Moreover, Sobha’s stock price is higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages, further reinforcing the positive momentum.
Realty Stocks Top Gainers
Shares of real estate companies continued at their northward movement on Thursday with the Nifty Realty index gaining over 2 per cent on the National Stock Exchange (NSE) in the intraday trade, on a healthy growth outlook.
Sobha, Macrotech Developers (Lodha), Godrej Properties, and Prestige Estates rallied between 3 per cent and 8 per cent today, and were trading at their respective new highs. DLF, Brigade Enterprises, and Oberoi Realty from the index, too, were up in the range of 1 per cent to 2 per cent.
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