Sobha board approves buyback of shares for Rs 75cr

Realty firm Sobha today said its board has approved buyback of up to 22.75 lakh shares of the company from existing shareholders for about Rs 75 crore.
The company would buyback these shares at Rs 330 per share, which is higher that today's closing price of Rs 305.50 apiece on the BSE.
"The board of directors of the company at its meeting held on May 19 has approved a proposal to buyback up to 22,75,000 equity shares of the company for an aggregate amount not exceeding Rs 75.07 crore being 2.32 per cent of the total paid up equity share capital, at Rs 330 per equity shares," the Bengaluru-based developer said in a regulatory filing.

The buyback is proposed to be made from all the existing shareholders of the company on a proportionate basis under the tender offer route. Promoters of the company would also participate in the proposed buyback.
Promoters have 60.58 per cent stake in the company as on March 31, 2016.
"The board has recommended a dividend of Rs 2 per equity share and also approved a proposal for buyback of equity shares from the existing shareholders. We believe that the proposed buyback will enhance the long term shareholder value," Sobha Vice Chairman and MD JC Sharma said in a statement.
Sobha is currently executing 40 real estate projects in 9 cities measuring 41.20 million sq ft of developable area and 29 million sq ft of saleable area. It also has 27 contractual projects measuring 8.07 million sq ft of developable area.