Shares of Sobha Ltd surged 7% and hit a 52-week high of Rs 2,220  on 13 June after the Board of Directors of the company approved the offer and issuance of equity shares for Rs 2,000 crore through a rights issue. 

The price of the right issue has been set at Rs 1,651 per equity shares, which is a 20% discount from the previous closing price of Rs 2,062.50 on Wednesday 12 June. 

The rights issue is set to open on 28 June and will close on 4 July. The company added that six rights equity shares will be issued for every 47 fully paid-up equity shares of the company held by the eligible equity shareholders as on the record date of 19 June. 

By applying for the rights issue, the shareholders will have to pay a premium of Rs 820.5 per share with a face value of Rs 5 each, and the remaining balance amount will have to be paid in not more than two subsequent calls on or before 31 December 2025.

This fundraising plan comes after another Bangaluru-based company, Prestige Estate, announced its plan for an Initial Public Offering (IPO) for its hospitality arm. 

In its quarterly earnings for January-March, the company reported an 85% year-on-year decline in net profit to Rs 7 crore. However, revenue from operations during the quarter grew by 37% YoY to Rs 763 crore. 

At 11:38 am, the shares of Sobha were trading 5% higher at Rs 2,165.70 on NSE.