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Shankara Building Products IPO oversubscribed 41 times on last day

Chillicious News

The initial public offering (IPO) of home improvement and building products firm Shankara Building Products was oversubscribed 40.78 times on the closing day.

The IPO received bids for 21,59,00,032 shares against the total issue size of 52,94,467 shares, data available with the NSE till 4:45 pm showed. The company on Tuesday raised Rs 103.5 crore from anchor investors.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 75 percent, while non-institutional investors segment witnessed subscription of 49 percent. Retail investors’ category was oversubscribed 4.35 times.

Book running lead managers (BRLM) to the offer are IDFC Bank Ltd, Equirus Capital Pvt Ltd and HDFC Bank Ltd.

The retailer of home improvement and building products is set to open an issue of Rs 350 crore, with an issue price of Rs 440-460, on March 22 and will close on March 24. The issue will constitute at least 25 percent of the post offer paid-up equity share capital of the company.

“The issue comprises of a fresh issue of equity shares aggregating up to Rs 45 crore and an offer for sale of up to 8,16,252 shares by promoter Sukumar Srinivas and up to 57,05,488 shares by Fairwinds Trustees Services (acting in the capacity of trustee of Reliance Alternative Investments Fund – Private Equity Scheme I),” the company said in its press release.

The company sells products at its various stores that operate under the trade name Shankara BuildPro. Its products include structural steel, cement, thermo mechanical treatment bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, plumbing products, tiles, sanitary ware, water tanks, plywood, kitchen sinks, and lighting and other allied products.

It operated 103 stores spread across 9 states and 1 union territory in India. It also provides customised solutions to enterprise customers through bespoke steel products, which is backward integrated through its own processing facilities in select building products.