Shankara Building Products Sees Strong Listing, Gains 35% Over Issue Price

Shankara Building Products shares witnessed a stellar listing on the exchanges with its shares surging as much as 37 per cent to Rs 629.90 on Wednesday compared to their issue price of Rs 460. Shankara Building Products saw a strong response to its Rs 345-crore IPO (initial public offer), which was subscribed nearly 42 times led by demand from the QIB (qualified institutional buyer) and HNI segments. The segment for institutional investors was subscribed 52 times while the HNI segment saw 91 times subscription. The retail investor category witnessed a subscription of 15.35 times.

Shankara Building Products IPO was a combination of fresh issue and an offer for sale by existing investors. Bengaluru-based Shankara Building Products raised a fresh capital of Rs 45 crore through this IPO while its existing investors offloaded shares worth Rs 300 crore in the issue.

Established in 1995, Shankara Building Products is an organised retailer of home improvement and building products in India. It supplies TMT bars, pipes, tubes, tiles, kitchen sinks etc. The company supplies products through its 103 Shankara Buildpro stores.

The year 2017 so far has been very good for companies raising money through IPOs. Last month, Avenue Supermarts, the owner of supermarket chain D-Mart, received a blockbuster response to its IPO. Its shares more than doubled to Rs 649 against its issue price of Rs 299. Earlier, IPOs of Sheela Foams, PNB Housing Finance and Endurance Technologies had also witnessed strong responses to their issues.

As of 12:46 pm, Shankara Building Products shares traded 34.2 per cent higher at Rs 617.60.