Sobha Limited Files Statement of Deviation in Utilization of ₹1,999.03 Crore Rights Issue Proceeds for Quarter Ended June 2026

Sobha Limited Discloses Rights Issue Funds Utilisation for June 2026 Quarter

Sobha Limited disclosed a Statement of Deviation and Variation in utilization of funds raised to both the BSE and NSE, with the statement relating to the use of proceeds from its Rights Issue and duly reviewed by the Audit Committee at its meeting held on July 20, 2026.

Rights Issue Overview

The rights issue of ₹1,999.03 crore was raised on July 11, 2024. The issue comprised 1,21,07,981 equity shares at ₹1,651 per share.

The company originally proposed utilization of the net proceeds for repayment or prepayment of borrowings of ₹905 crore, funding project-related expenses for ongoing and forthcoming projects of ₹212.36 crore, purchase of equipment and machinery of ₹210.03 crore, and funding acquisition of unidentified land parcels and general corporate purposes of ₹658.59 crore.

Fund Utilisation and Monitoring

The statement was filed for the quarter ended June 30, 2026, with ICRA Limited serving as the monitoring agency. ICRA monitored ₹1,984.25 crore for Q1 FY2027, and no deviation was observed in the utilisation of funds.

The actual unutilized proceeds stood at ₹167.38 crore, with part payment received against the rights issue, and there was no variation or deviation in the utilisation of such funds.

Q1 FY27 Financial Performance

Sobha reported a standalone net profit of ₹580 crore for the first quarter, compared with ₹459 crore a year earlier, while revenue from operations rose to ₹1,258 crore from ₹919 crore.

The company announced record quarterly sales bookings of ₹36.56 billion for the three months to June 2026, a 76 percent increase over the same period last year, selling 2.34 million square feet of residential space across 1,432 units and plots.

Bengaluru contributed ₹20.67 billion of sales, while the National Capital Region added ₹13.84 billion.

Developer Background

Sobha Limited is one of India's most established premium real estate developers, incorporated in August 1995 by P.N.C. Menon in Bengaluru. The company operates across Bengaluru, Gurgaon, Kerala, Chennai, Pune, Coimbatore, Mysore, and GIFT City.

Sobha is distinguished by its backward integration model, managing design, construction, glazing, metalwork, interiors, and concrete products in-house, which structurally differentiates it from most Indian developers who rely on subcontractors.