Active Stocks
Thu Mar 28 2024 14:59:25
  1. Tata Steel share price
  2. 156.00 2.06%
  1. HDFC Bank share price
  2. 1,452.00 0.78%
  1. ITC share price
  2. 429.85 0.43%
  1. Power Grid Corporation Of India share price
  2. 277.70 2.45%
  1. State Bank Of India share price
  2. 754.75 2.82%
Business News/ Market / Stock-market-news/  Shankara Building shares debut on stock market, gain 38% on listing
BackBack

Shankara Building shares debut on stock market, gain 38% on listing

Shankara Building shares closed at Rs632.80 after listing on the stock market

The shares of Shankara Building Products, which manufactures building products, closed at Rs 632.80 on BSE, up 37.57% from its issue price of Rs460 a share.Premium
The shares of Shankara Building Products, which manufactures building products, closed at Rs 632.80 on BSE, up 37.57% from its issue price of Rs460 a share.

Mumbai: Shares of Shankara Building Products Ltd (SBPL) on Wednesday closed up 37.57% at Rs632.80 on debut, following subscription of 41.6 times for the initial public offering (IPO) of Rs350 crore last week.

The scrip opened at Rs545 a share and touched a high and a low of Rs638 and Rs545, respectively. India’s benchmark Sensex index closed higher by 0.21% to close at 29974.24 points. In intraday, it surged as much as 38.7%.

Shankara Building plans to use around 10% of the funds to retire debt and the rest for general corporate purposes.

CL Educate Ltd and Avenue Supermarts Ltd were among companies that successfully floated IPOs in this calendar year. CL Educate shares fell 20%, while those of Avenue Supermarts doubled value on listing.

At the end of December quarter, the Bengaluru-based company generated 42% revenues from the retail segment, 25% from channels and 33% from enterprise sales.

It operates 103 stores across nine states and one Union territory in India. Also it has a robust logistic network consisting of 56 warehouses and a fleet of 44 owned trucks.

For fiscal year 2016, Shankara Building posted a consolidated net profit of Rs41.3 crore, up 82.7% from a year ago, while net sales were at Rs2,035.9 crore, up 2.9%.

Also Read: Shankara Building IPO: Shares to list on 5 April

“Considering its strong retail presence, diversified product offering, substantial same store sales growth (last five years average growth is 23%) and robust retail revenue of 29% over FY2012-16, we expect that Shankara Building to witness higher revenues from its retail business going ahead," said Angel Broking in an 18 March note.

The issue, which opened on 22 March and closed on 24 March, was subscribed 51.62 by qualified institutional buyers, while the categories for non-institutional investors and retail investors were subscribed 90.68 times and 15.35 times, respectively.

The IPO comprised 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. Fairwinds, which has had a 34.78% stake in the company, invested Rs80 crore in 2011.

On 21 March, the company raised Rs103.5 crore from 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, Equirus Capital and HDFC Bank were the lead managers for the offering.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 05 Apr 2017, 10:39 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App