Shankara BuildPro Ltd
Face Value – Rs.10
Issue Size – Rs. 350 Crs
Issue Open – March 22-24, 2017
Price Band – Rs.440 – Rs.460
Offer For Sale – Offer for Sale of 6818366 Equity Shares of Rs 10
New Issue – Upto Rs.50 Crs of Rs.10 each.
BRRLM – IDFC Bank, Equirus, HDFC Bank, Karvy.
Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
EPS (Rs) |
P/E |
Industry P/E |
P/BV |
Promoter’s Stake |
| 21.87 | 49 | 5 | 2037 | 41.6 | 22 | 19.04 | 24.16 | – | 20.9 | 60.98 |
Overview:
- Incorporated in 1995, Shankara Building Products Ltd is retailers of home improvement and building products in India.
- They offer a wide range of products at their stores which includes structural steel, cement, TMT bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, plumbing, tiles, sanitary ware, water tanks, plywood, kitchen sinks, lighting and other allied products.
- As of September 24, 2016, they operated 100 Shankara BuildPro stores covering the end-user segments of urban and semi-urban markets in Andhra Pradesh, Goa, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, Telangana, and Puducherry.
- The company also manufactures, assembles, processes, trades in, imports, exports, or deals in a range of steel sheets, steel roofing sheets, walling products, accessories, and steel structures and purlins used for construction of various types of building structures, as well as steel pipes, tubes and pipe fittings and iron and steel and allied products and engages in general hardware and general wholesale trading activities.
- They serves home owners, architects and contractors and small enterprises and housing, general engineering, automotive, renewable energy, agriculture, and construction and infrastructure sectors.
- They also carry reputed third party brands such as Sintex, Uttam Galva, Uttam Value, Futura, APL Apollo and Alstone and their own brands such as CenturyRoof, Ganga and Loha at their retail stores.
Management :
Mr. Sukumar Srinivas is the Promoter of the Company.
Objects of the Issue:
The object of the issue are:
- Repayment or pre-payment of loans of the Company and VPSPL;
2. General corporate purposes;
3. Receive the benefits of listing of the Equity Shares on the Stock Exchanges; and
4. Enhancement of Company’s brand name and creation of a public market for the Equity Shares in India.
Major Shareholders:
| Sr.No | Non – Promoters | No. of shares held | % of shares held |
| 1 | Sukumar Srinivas | 1336250 | 60.98 |
| 2 | Fairwinds | 7607317 | 34.78 |
| 3 | Shankara Holdings | 161200 | 0.74 |
| 4 | Parwathi Mirlay | 100000 | 0.46 |
| 5 | C Ravikumar | 72400 | 0.33 |
| 6 | RSV Sivaprasad | 61550 | 0.28 |
| 7 | Dhananjay Srinivas | 60550 | 0.28 |
| 8 | KG Kashinath | 41550 | 0.19 |
| 9 | V Devananthan | 41550 | 0.19 |
| 10 | Alex Varghese | 20620 | 0.09 |
| 21502987 | 98.32 |
Consolidated Financial Trends (In Rs.Crs) :
| Particulars | FY16 | FY15 | FY14 | FY13 | FY12 |
| Equity Paid Up | 21.87 | 21.87 | 21.87 | 21.17 | 20.31 |
| Networth | 49 | 45 | 43 | 39 | 34 |
| Total Debt | 213 | 286 | 280 | 272 | 216 |
| Net Sales | 2037 | 1980 | 1928 | 1767 | 1414 |
| Other Income | 0.07 | 0.08 | 0.08 | 0.03 | 0.03 |
| PAT | 41.64 | 22.58 | 28.71 | 21.82 | 29.89 |
| Book Value (Rs) | 22 | 21 | 20 | 18 | 17 |
| EPS (Rs) | 19.04 | 10.32 | 13.13 | 10.31 | 14.72 |
