Sobha seeks shareholders nod to raise upto Rs 500cr via NCDs

Realty firm Sobha Ltd plans to raise up to Rs 500 crore this fiscal through private placement of non-convertible debentures (NCDs).
In a notice to shareholders for the company's Annual General Meeting (AGM), Sobha has sought shareholders approval to issue secured or unsecured redeemable NCDs to raise up to Rs 500 crore in one or more tranches on private placement.
Bengaluru-based developer said that it has to borrow money from banks and other financial institutions in order to execute various projects both residential and contractual.
The company has currently availed project specific or general purpose borrowings from various banks and financial institutions to finance the execution of the projects. It has also issued secured redeemable NCDs aggregating to Rs 325 crore in multiple tranches during the last financial year.

Sobha had posted 35.6 per cent decline in net profit to Rs 153.3 crore in last fiscal from Rs 238.1 crore in the previous fiscal. Income from operations fell to Rs 1,865 crore last financial year from Rs 2,440.6 crore in the 2014-15 fiscal.
The company sold properties worth Rs 2,012 crore last fiscal, down 4 per cent from the previous year, due to demand slowdown in the housing segment.
Besides Bengaluru, Sobha has presence in Chennai, Gurgaon, Thrissur, Pune, Coimbatore, Cochin, Calicut and Mysore property markets.