Bandhan Mutual Fund Lifts Sobha Stake to 9.07% Through Open-Market Buying

What happened

Bandhan Mutual Fund filed a disclosure on 26 October 2026 showing that its aggregate holding in Sobha Limited rose from 7.0264% to 9.0677%. The filing was made by Bandhan AMC, which acts as investment manager for the fund. The disclosure was made under Regulation 29(2) of the SEBI takeover regulations, which requires reporting of significant changes in shareholding.

The purchases were made on the secondary, or open, market. Between 8 May 2026 and 26 October 2026 the fund bought 2,183,115 shares. Of these, 124,044 equity shares were completed on 26 October 2026, the day of the filing.

The numbers

The stake is measured against Sobha's paid-up equity share capital. Based on the share count in a September 2025 filing, Sobha had 10,69,11,533 fully paid equity shares, and the fund's post-purchase holding of 9,697,349 shares works out to the 9.0677% reported.

Earlier steps in the same holding

The current filing follows earlier increases. On 26 September 2025, Bandhan Mutual Fund raised its stake to 5.0114% by acquiring an additional 0.0146% of shares. Through its Bandhan Small Cap Fund, the investment manager acquired 72,000 equity shares on 7 May 2026, which took the holding from 5.0114% to 7.0264%. That purchase falls one day before the 8 May start date of the current window, so the two disclosures overlap on timing.

Bandhan Small Cap Fund lists Sobha as its largest holding, at 2.30% of the fund, followed by REC and Cholamandalam Financial Holdings.

Sobha's recent operating picture

The shareholding change comes after Sobha's results for the second quarter of FY27 and the half year ended 30 September 2026, which the board approved on 19 October 2026.

• H1 FY27 sales value was INR 5,862 crore, up 47.2% year on year. The company described it as its strongest half year on record.
• Q2 FY27 sales value was INR 2,206 crore, up 16% year on year, on 1.42 million sq ft across 828 units.
• Average realisation in Q2 was INR 15,522 per sq ft, against INR 13,648 a year earlier, a rise of 13.7%.
• Q2 revenue was INR 1,017 crore. H1 revenue was INR 2,347 crore, down 1% year on year.
• Q2 profit after tax was INR 33 crore. H1 profit after tax was INR 84 crore, down 2.6% year on year.
• H1 collections reached a record INR 4,009 crore, up 4.8%.
• Bangalore accounted for 57.7% of Q2 sales value, NCR for 33.7% and Kerala for 6.1%.

Management said it expects profit after tax to grow by at least 50% in FY27 and expects EBITDA margins to improve in the second half.

Legal and tax matters

The Enforcement Directorate has provisionally attached land parcels worth INR 2,016.05 million held by Technobuild Developers Private Limited under the Prevention of Money Laundering Act, 2002. Sobha has appealed the order and says the transactions complied with applicable laws.

The Income Tax Department has issued demand orders totalling INR 842 million for assessment years 2015-16 to 2023-24. The company has filed appeals and says, based on independent legal opinions, that no adjustments are required.

On 24 October 2026, Sobha published a forfeiture notice for partly paid-up shares in three newspapers, in English, Kannada and Hindi.

What it means for buyers, investors and the market

The filing concerns Sobha's shareholding only. It does not describe any change to projects, prices, possession timelines or delivery. Home buyers do not see a direct effect from it.

For investors, the rise is a change in the register of shareholders. A mutual fund increasing its holding is often read as a sign of confidence in a company's growth or valuation, but the filing itself does not state the fund's reasons. The disclosure was made in line with regulatory requirements.

The Bengaluru housing market is the context for Sobha's sales. According to Knight Frank India, Bengaluru recorded 27,968 residential sales in H1 2026, up 5% year on year, and was the fastest-growing residential market among India's eight largest cities. New residential launches rose 4% to 34,749 units over the same period.

Background on the shareholding

In July 2024, Godrej Industries Group's family office arm, Anamudi Real Estates LLP, sold a 4.4% stake in Sobha for Rs 858 crore through open-market transactions. Mirae Asset, Invesco and Aditya Birla Sun Life mutual funds were among the buyers in that sale, together acquiring 23.09 lakh shares.

What comes next

The disclosure does not set out a dated next step for Bandhan Mutual Fund's holding. Any further change would be reported through a new filing under the same takeover regulations. On the company side, Sobha's management has given its FY27 profit guidance, noted above, without a fixed date for delivery against it.