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Our Bureau

Bangalore, Aug. 20

Sobha Developers has submitted a copy of the circulation resolution, approved by the majority of company’s directors, to the Bombay Stock Exchange on Tuesday.

The company had earlier announced a rights issue for Rs 350 crore, which it hopes to get approved by its shareholders at an extra-ordinary general meeting (EGM) that would be convened on September 22, said Mr J.C. Sharma, Managing Director, Sobha Developers.

He said the company hopes to complete the rights issue by this financial year. Mr Sharma said: “We want to improve our debt-equity ratio and the rights issue would help us achieve this.” He added that the rights issue would improve the company’s working capital requirements, besides strengthening the balance sheet. Details such as the ratio of rights issue and pricing would be decided after the EGM, he said.

The company is not planning to tap any other source of equity funding for now, Mr Sharma said, adding that they, however, did not rule out tapping the private equity sources.

More Stories on : Rights Issue | Real Estate & Construction

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