Godrej Family Office Reduces Stake in Sobha Ltd, Sells Shares Worth Rs 858 Crore

Godrej Industries Groups' family office arm, Anamudi Real Estates LLP, divested a 4.4 per cent stake in Sobha Ltd for Rs 858 crore through open market transactions on Friday. Exchange data revealed that Anamudi Real Estates LLP sold 47.37 lakh shares, representing a 4.43 per cent stake in Sobha Ltd.

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Stake Sale and Shareholding

The shares were sold at an average price of Rs 1,810.44 each, bringing the transaction value to Rs 857.70 crore. Following this sale, Anamudi Real Estates' shareholding in Sobha Ltd, based in Bengaluru, decreased from 9.99 per cent to 5.57 per cent.

Meanwhile, Mirae Asset Mutual Fund, Invesco Mutual Fund, and Aditya Birla Sun Life Mutual Fund collectively acquired 23.09 lakh shares of Sobha Ltd. These shares were bought at prices ranging from Rs 1,809.82 to Rs 1,810.05 each, with the total transaction value amounting to Rs 418.06 crore.

Investment Strategy and Market Impact

Sources indicated that the Godrej Industries Group family office sold its shares in Sobha Ltd at a tenfold multiple of the original investments, including dividends over a four-year holding period. This divestment aligns with their strategy to monetise investments.

Shares of Sobha Ltd fell by 3.77 per cent to close at Rs 1,792.35 per piece on the BSE on Friday following the stake sale announcement.

Company Background and Future Plans

Sobha Ltd is a prominent real estate developer in India and recently raised Rs 2,000 crore through a rights issue. The company was founded in 1995 and operates in both Dubai and India under the names Sobha Realty and Sobha Ltd respectively.

In a recent interview, Sobha Group founder PNC Menon mentioned that the Group has an aggressive expansion plan for its India business and will soon enter the Mumbai luxury housing market.

Financial Performance

Sobha Ltd was listed on Indian stock exchanges in 2006 and is a leading real estate player in South India. The company reported a 28 per cent growth in sales bookings during the last financial year, reaching Rs 6,644.1 crore from Rs 5,197.8 crore in the previous fiscal year.

Menon stated that the company aims to achieve more than a four-fold increase in annual sales bookings to Rs 30,000 crore within the next four to five years.

Details about other buyers involved in this transaction remain unclear at this time.