In this post, I will discuss on the Shankara Building Products IPO review and also will inform you about the grey market premium (GMP) of the Shankara Buildpro IPO.
Shankara Building Products IPO Details:
The issue opens: March 22, 2017
The issue closes: March 24, 2017
Number of shares offered: 75,44,467
IPO size: Rs. 345 crores (approx)
Face value: Rs. 10
Issue price: Rs. 440 – Rs. 460 per share
Minimum order quantity: 32 shares
Listing: BSE / NSE
Shankara Buildpro IPO Allotment Details:
Retail allocation: 35%
Allotment date: March 30th, 2017
Refunds: March 31st, 2017
Share transfer to demat: April 3rd, 2017
Listing date: April 5th, 2017
More about the company Shankara Building Products:
The company is a retailer of home improvement and building products. They deal in structural steel, cement, TMT bars, primers, tiles, hollow blocks, pipes and tubes, roofing solutions, welding accessories, solar heaters, plumbing, sanitaryware, water tanks, plywood, kitchen sinks, lighting and other related products.
They own brands like Century Roof, Ganga, and Loha. The company runs 103 Shankara Buildpro stores. They sell directly to builders, contractors, and OEMs. They also supply products to dealers and retailers. The name of the promoter is Mr. Sukumar Srinivas.
The objective of the Shankara Building Products IPO:
1) Pre-payment of loans of the company and also Vishal Precision Steel Tubes& Strips Private Limited (VPSPL) where Mr. Sukumar Srinivas is also a director.
2) Receiving benefits of the listing of shares.
3) Enhancement of companies brand name.
Now let’s have a look at the companies financials:
It can be seen that though the company’s profits have declined in FY2014-2015 once again profits are back on track in FY2016 and first 9 months of FY2017.
Shankara Building Products IPO Review:
I think that the share will be able to clock listing gains so one can subscribe to it but this should not be kept for the long term.
Shankara Buildpro IPO GMP: The grey market premium of the IPO is hovering at 135-140.