Sobha Limited has released its statement regarding the utilization of funds raised through its Rights Issue. As of March 31, 2026, the company has successfully deployed INR 1,777.74 crore of the total INR 1,999.03 crore raised. The capital has been directed towards debt repayment, project expenses, equipment procurement, and land acquisition, with no reported deviations from the original objects stated in the initial offering document.
Financial Utilization Overview
Following the Rights Issue dated July 11, 2024, Sobha Limited has maintained a disciplined approach to capital deployment. By the end of Q4 (the quarter ended March 31, 2026), the company reported a total utilization of INR 1,777.74 crore. Management has confirmed that there have been no deviations or variations in the use of funds against the objects outlined in the original Letter of Offer.
Breakdown of Fund Deployment
The company has allocated and utilized the raised funds across several strategic areas to drive operational efficiency and growth:
- Debt Repayment: A total of INR 905 crore has been fully utilized for the repayment or prepayment of existing borrowings.
- Project Funding: INR 159.93 crore has been directed towards expenses for ongoing and forthcoming projects.
- Operational Expansion: INR 632.09 crore has been used for the acquisition of land parcels and general corporate purposes.
- Capital Expenditure: INR 67.83 crore was utilized for the purchase of equipment and machinery.
- Issue Expenses: INR 12.89 crore has been spent on costs related to the Rights Issue process.
Status of Unutilized Funds
As of the end of the quarter, the remaining unutilized proceeds amount to INR 221.28 crore. This balance includes INR 0.16 crore specifically earmarked for remaining issue-related expenses. Additionally, the company noted that interest income totaling INR 29.34 crore, generated from temporary investments of the issue proceeds, is not included in the primary unutilized fund figure.
Source: BSE
