Sobha hits 52-week high; zooms 61% post closure of buyback offer

In past three weeks, post Q2 results, the stock of realty company surged 32% as compared to 0.3% decline in Sensex.

Sobha hit a 52-week high of Rs 636, up 8% on the BSE in intra-day trade. The stock rallied 61% from Rs 396 after closure of share buyback programme. The buyback had commenced on September 19, 2017 and closed on October 3, 2017.

Sobha bought back 1.46 million equity shares, utilising a total of Rs 62 crore, which represents 1.5% of the total paid-up equity shares capital of the company. It bought shares at price of Rs 425 per share through tender offer.

In the past three weeks, the stock of realty company surged 32% after it reported a 30% increase in its consolidated net profit at Rs 50.2 crore for the quarter ended September, on higher sales. By comparison, the S&P BSE Sensex was down 0.3% during the period.

Its net profit stood at Rs 38.6 crore in the year-ago period. Total revenue rose 19% to Rs 658 crore for the second quarter of this fiscal from Rs 552 crore in the year-ago period.

At 03:04 PM; the stock was trading 5% higher at Rs 622 on the BSE, as compared to 1.22% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.2 million shares changed hands on the NSE and BSE so far.