Sobha surges 7% on development plans, pares gains later

NEW DELHI: Shares of Sobha shot up 7 per cent in Tuesday's trade amid a media report suggesting that the company is looking to spend Rs 3,000 crore to build 7-10 million square feet of apartments and villas in the next four to six quarters.

Following the report, the stock rose 7 per cent to hit a high of Rs 632 on BSE. However, the stock pared most gains. It was trading 1 per cent higher in the afternoon trade.

The construction will be done in Kochi, Pune, Bengaluru, Chennai, Thrissur Kozhikode and Gurugram, among others, the report suggested.

The stock has been in news ever since the company said it would develop a super luxury waterfront residential project Marina One in co-ownership with Puravankara. This project is planned in an area of 16.7 acres at the Marine Drive, Kochi.

J.C. Sharma, Vice Chairman and Managing Director at Sobha had told ET that the company would launch another project in Kochi soon.

The backward-integrated real estate player currently has projects in Thrissur and Kozikkode, ET reported.

In last one quarter, the stock has rallied 48 per cent, data suggested.