Shankara Building Products IPO Reviews 21 March

INDORE, India - March 21, 2017 - PRLog -- hankara Building Products IPO would strike capital markets on Wednesday (March 22) to hike around Rs 350 crore. The organization has settled a value band of Rs 440-460 for every equity stock to face estimation of Rs 10. The issue would end on March 24. Investors can bid for at least 32 equity stocks and in products of 32 equity stocks from that point.

About the organization: The organization is one of the main sorted out retailers of home improvement and building products in India in view of the quantity of stores, working under the trade name Shankara BuildPro. As on Sept. 24, 2016, the organization was operating 100 Shankara BuildPro stores, spread crosswise over 10 states in India. Shankara Buildcon caters to a large client base crosswise over different end-client portions in urban and semi-urban markets through its multi-channel deals approach, preparing facilities, supply network and logistics capacities.

The organization principally offer steel-based products, for example, basic steel, TMT bars, pipes and tubes and other partnered steel products. Given the wide application of such building products, Shankara likewise takes into account numerous areas, including housing, general engineering, car, renewable energy, agriculture, development and infrastructure.  As of August 31, 2016, the organization's retail operations were spread crosswise over Andhra Pradesh, Goa, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, Telangana and Puducherry.

Issue details of Shankara Building Products IPO

 »»  Issue Open: March 22, 2017 Issue close - March 24,2017:
 »»  Issue Type: Book Built Issue IPO
 »»  Issue Size:
   ›  Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 45.00 Cr
   ›  Offer for Sale of 6,521,740 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
 »»  Face Value: Rs 10 Per Equity Share
 »»  Issue Price: Rs. 440 - Rs. 460 Per Equity Share
 »»  Market Lot: 32 Shares
 »»  Minimum Order Quantity: 32 Shares
 »»  Listing At: BSE, NSE

Financial:

For the fiscal year closed March 2016, the organization had posted a net benefit of Rs 65.56 crore against Rs 34.54 crore in the past fiscal year closed March 2015. It had posted a net benefit of Rs 42 crore, Rs 47.76 crore and Rs 44.75 crore in FY14, FY13 and FY12, respectively. In any case, the organization had enrolled a negative cash stream out 4 of the previous 5 fiscal years. Cash flows of an organization is a sign to demonstrate the degree of cash produced from the operations of an organization to meet capital use, pay dividends, repay loans and make fresh ventures without increasing finance from external assets.

Purpose behind the IPO

The organization plans to use net continues from this offer for prepayments or repayments of possess and its subsidiary Vishal Precious Steel Tubes and Strips Pvt. Ltd's (VPSPL) obligation. The organization additionally proposes to utilize these assets for undertaking existing exercises and for general corporate purposes. The organization hopes to enhance its brand picture through posting on the share exchange. The organization won't get any get advantage from OFS.

Qualities

The organization has solid vendor network with the relationship of more than 2 decades. Shankara likewise has a nearness over the whole value chain with vigorous back-end infrastructure guaranteeing proficient supply chain management. The organization likewise has encountered management group with solid follow record and fiscal steadiness.

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