FinanceFlash India

image source:- google finances Sobha Limited, one of India's prominent real estate developers, saw its shares rally nearly 8% on June 13, buoyed by a significant announcement from its board. The company's decision to greenlight a ₹2,000 crore rights issue sent its stock price soaring, reflecting investor optimism in the company's growth prospects. Understanding the Rights Issue In a move aimed at bolstering its financial base, Sobha Ltd announced plans to issue 1.2 crore shares at ₹1,651 each, representing a 20% discount to the previous day's closing price. This rights issue, set to commence from June 28 and conclude on July 4, aims to raise funds from existing shareholders. For every 47 fully paid-up shares held, eligible shareholders will be entitled to purchase 6 rights equity shares. The board's decision to offer shares at a discounted rate underscores Sobha's strategy to enhance liquidity and fortify its balance sheet amidst a dynamic market environment. Th...