Sobha Ltd to launch rights issue on Friday to raise up to Rs 2,000 cr

Realty firm Sobha Ltd will launch its rights issue on Friday to raise up to Rs 2,000 crore mainly to reduce debt, purchase land as well as machines and meet the construction cost of its various projects.

The issue will close on July 4.

On June 12, the Board approved the terms of the rights issue.

The Bengaluru-based company would issue 1,21,07,981 equity shares each on partly-paid basis for an amount up to Rs 2,000 crore.

The price fixed for rights issue is Rs 1,651 per share (including premium of Rs 1,641 per share).

The rights entitlement ratio has been fixed at 6 rights equity shares for every 47 fully paid-up equity share of the company held by the eligible equity shareholders of the company, as on the record date.

On the objects of the issue, the company has proposed to utilise Rs 905 crore for repayment or prepayment, in full or in part, of certain borrowings.

The company plans to utilise Rs 212.35 crore to fund certain project related expenses for ongoing and forthcoming