Shankara Building Products IPO to hit the markets

Shankara Building Products is tapping the capital market to garner funds up to Rs 400 crore through an initial public offer (IPO). 

Shankara Building Products will utilise proceedings to retire debt and provide partial exit to investor Fairwinds Private Equity. In addition to repaying debt, the company will use the issue proceeds to support its future growth and expansion plan. It will also enhance Company’s brand name and creation of a public market for the equity shares in India.

In 2011, Fairwinds had invested around Rs 80 crore in the company. The company will retain around 7 per cent in Shankara Building Products out of its total pre-IPO holding of around 34 per cent.

To tap the growing demand for home building and home improvement products, Shankara Building Products intend to expand our footprint its stores over the next few years. The company has opened eight new Shankara BuildPro stores in CY16. It operated 103 stores spread across 9 states and 1 union territory in India. 

Shankara Building Products is looking to leverage on its existing logistics capabilities and backward integrated processing units to further expand its retail operations across India. The company caters to a customer base across various end-user segments in urban and semi-urban markets mainly in south India through our multi-channel sales approach, processing facilities, supply chain and logistics capabilities.