Realty firm Sobha Group has announced its aggressive expansion plan for its India business, with a focus on entering the luxury housing market in Mumbai. The company aims to achieve a significant increase in its annual sales bookings, targeting Rs 30,000 crore in the next 4-5 years.
A Leading Player in South India: Sobha Group, established in 1995, is a prominent real estate company that operates in both India and Dubai. The company got listed on the Indian stock exchanges in 2006 and has become one of the leading players in the South Indian real estate market.
Expansion Strategy in Mumbai: To facilitate its expansion in Mumbai, Sobha Group is exploring various options for acquiring land parcels in the region. These options include outright purchases, joint development with land owners, and the redevelopment of existing housing societies. By considering diverse strategies, the company aims to secure prime locations for its luxury housing projects in Mumbai.
Aggressive Growth Targets: Sobha Group has set ambitious growth targets for its sales bookings in India in the coming years. In the last financial year, the company recorded a growth rate of 28%, with sales bookings reaching Rs 6,644.1 crore, compared to Rs 5,197.8 crore in the preceding fiscal year. By addressing the demand for luxury housing in Mumbai, Sobha Group seeks to further elevate its sales performance.
Raising Equity Base and Rights Issue: To support its expansion plans and position itself for future growth, Sobha Ltd has decided to increase its equity base from the current Rs 2,500 crore to Rs 4,500 crore. Additionally, the company has planned a Rs 2,000 crore rights issue exclusively for existing shareholders. This initiative will enable more significant participation of the existing stakeholders and provide them with the opportunity to contribute to the company’s growth while potentially benefiting from its future success. Currently, the promoters hold around 52% stake in Sobha Ltd. As Sobha Group embarks on its expansion journey in the upcoming luxury housing market in Mumbai, its aggressive growth targets, proactive acquisition strategies, and increased equity base demonstrate its commitment to both shareholders and prospective luxury homebuyers. The company’s expertise and success in the South Indian real estate market will undoubtedly aid its quest for becoming a major player in Mumbai’s luxury housing segment.
