Jobaaj Stories
Shares of mid-cap realty company Sobha Ltd. fell 13% today as news of raids conducted by the Income Tax department spooked the investors.
Sobha Ltd., earlier known as Sobha Developers, was established in 1995 by Mr PNC Menon, a veteran in the field of interiors and construction. The company constructs major residential and commercial projects and has various divisions such as Interiors, Metal Works, Concrete, etc.
The country mainly operates in the states of Karnataka, Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Maharashtra, Haryana and Punjab. The company was listed on Indian bourses in 2006 when it set the record by having its issue oversubscribed 126 times!
According to a statement by the company, the Income Tax department carried out raids at the company's office and other premises while adding that it was fully cooperating with the authorities.
However, the statement did not mention the reason for the raid or the scale of the raid as the company did not disclose any other data.
The shares of the company have been on a losing streak since March as it was steadily declining. However, when news of the raid hit the markets around 12:30 pm, the stock witnessed heavy selling pressures.
The stock fell well below the Rs 450 mark as it hit a 52-week low of Rs 432 per share, a price level the stock hadn't hit since 2021! The stock finally closed at Rs 452.55 per share, down 12.85% in a day, it is the worst in 2023!!
Sobha Ltd. was the worst performer in the Nifty Realty Index today as it was among the 4 out of 10 stocks that declined today. Nifty Realty closed 0.40 points or 0.1% below yesterday's close at 394.30.
- Aman Agarwal
