Shankara Building IPO subscribed 2.49 times on Day 2

The Shankara Building IPO received bids for 1,31,88,736 shares against the total issue size of 52,94,467 shares issued at a price band of Rs440-460 per share

The price band for the Shankara Building IPO is Rs440-460 per share. Photo: iStock
The price band for the Shankara Building IPO is Rs440-460 per share. Photo: iStock

New Delhi: The initial public offering (IPO) of Shankara Building Products, a retailer of home improvement and building products, received bids for 2.49 times the shares on offer at the end of the second day of the bidding process.

Investors bid for as many as 13.18 million shares at the end of Thursday against the 5.29 million shares on offer, data from the stock exchanges showed.

Retail investors led the subscription activity on day two as well, with the book covered 4.35 times the shares reserved for them.

While the shares reserved for qualified institutional buyers was subscribed 75%, the portion set aside for non-institutional investors such as corporate houses and wealthy individuals received bids for about 49.4%, the data available by 5pm on NSE and BSE showed.

The Bengaluru-based Shankara Building, backed by Fairwinds Private Equity, has fixed a price band of Rs440-460 per share for the IPO.

At the upper end of the band, the overall size of the offering is about Rs345 crore.

Shankara Building is selling 25% of its total equity shares in the IPO, which closes on 24 March.

Fairwinds, which has had a 34.78% stake in the company, invested Rs80 crore in 2011. Shankara Building plans to use Rs38 crore to retire debt and the rest for general corporate purposes.

The IPO comprises a fresh issue of shares worth Rs50 crore and an offer for sale of nearly 1 million shares by managing director Sukumar Srinivas and 5.7 million shares by Fairwinds.

Ahead of its three-day share sale, the company raised Rs103.50 crore ($15.8 million) by selling shares to anchor investors including Ashoka Pte, the investment arm of Singapore-based Flowering Tree Investment Management, Nomura Singapore, an Asia fund of HSBC Global Investment Fund, and Franklin India.

IDFC Bank Ltd, Equirus Capital Pvt Ltd and HDFC Bank Ltd are managing the share sale.

More From Livemint