Shankara: a building block for your wealth

Due to discontinuation of high value bank notes many sectors were hit drastically, whereby the real estate sector was not an exception, and it also saw adverse impact of this move, which also reflected in many real estate companies’ quarterly earnings.

The real estate industry has been under pressure, but finally it seems to be on the verge of revival, as the situation is improving with better liquidity in the market and lower interest rates. To encash the opportunity in the current scenario, home improvement and building products company, Shankara Building Products (SBP) has entered the primary market on Wednesday and the issue will close today.

The price band for the IPO is Rs 440-460 per share.

On the last day of the issue, i.e. today till 12.15 p.m. Shankara Building Product oversubscribed 4.48 times.

After considering the overwhelming response for the IPO, Shankara Building Products is expected to fetch decent listing gains.

Shankara Bulding Products (SBP) derived around 40 per cent of its FY2016 sales through the retail channel, with the remaining being through the B2B route. In 2006, SBP forayed into the retail space by offering fabrication and construction material, such as structural steel, TMT bars, hollow blocks, pipes and tubes and roofing solutions. In 2016, the company started offering cement, tiles, sanitary ware, kitchen sinks and lighting products.

Meanwhile, state-run Hudco, has recently received capital markets regulator, SEBI's approval to raise funds through an initial share sale as part of the government's disinvestment drive.

Furthermore, the Real Estate (Regulation and Development) Act is expected to be rolled out by FY18. In recent times, Indian courts have delivered a series of judgments favouring real estate buyers, indicating that customers can hope for a better deal in realty transactions.