Shankara Building Products Debuts At 20% Premium To Issue Price
Shankara Building Products Ltd. made its stock market debut at a premium to its issue price, the fourth company to do so out of the five issues that got listed so far this year.
Shares of the home improvement company started trading at Rs 545, a 18.47 percent premium to the issue price of Rs 460 per share, on the Bombay Stock Exchange. The company also listed on the National Stock Exchange at Rs 555, a 20.65 percent premium to the issue price.
The company's Rs 350 crore initial public offering was subscribed 41.88 times towards the end of March, with the highest demand coming from the non-institutional investors. The section saw a subscription of 90.88 times.
Qualified Institutional Buyers (QIBs) and Retail Investors saw a subscription of 51.62 times and 15.35 times respectively.
Around 13 percent or Rs 45 crore of the IPO proceeds will be used to retire high cost debt and bulk of the proceeds will go to the private equity partner, Fairwinds Trustees Services. Fairwinds Trustees Services Private Ltd., an investment arm of Reliance Capital Ltd., sold 78 percent of its 35 percent stake in the company through the IPO.
The company had earlier raised Rs 103.5 crore from its anchor investors which included the likes of DSP BlacoRock Core Fund, ICICI Prudential Life Insurance Company and Reliance Nippon Life Insurance Company Ltd.
The company currently operates 100 retail stores under the ShankaraBuildPro brand and also manufactures home improvement products like roof sheets and water tanks.
Three out of the four companies listed earlier in 2017 have debuted at a premium to their issue price. CL Educate Ltd., which made its debut on the indices last week, listed at a 19.9 percent discount to its issue price.
After a successful IPO, Shankara Building Products looks to expand into Maharashtra & Gujarat, reports @ChitnisPurvahttps://t.co/sa3250f9Wm pic.twitter.com/6hrDdDYl2I
April 5, 2017
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