Godrej Group Hikes Stake In Sobha ltd To About 10% | Bloomberg
Godrej Group increased its stake in Sobha Ltd. as the diversified Indian conglomerate looks to gain market share.
Anamudi Real Estates LLP, wholly owned by the Godrej family, held 9.99% stake in the Bengaluru-based real estate developer as of June compared with 1.08% as of March, according to an exchange filing. The promoters’ stake rose 12 basis points during the period.
India’s real estate demand hasn’t recovered since November 2016 overnight cash ban and a stricter housing law protecting buyers against fraud. A slowing economy and a liquidity stress aggravated the slump, stalling projects. And then a virus-driven lockdown dealt a fresh blow.
Sobha said since construction activities were impacted due to the pandemic, there would be an adverse impact in billings. It will impact revenue recognition as there will be some delay in handing over of the apartments, it said in a media statement. The company follows the IND-AS 115 accounting standard where revenue recognition happens on handing over of the apartment. Its new sales fell 38% year
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