Shankara Building Products to
raise up to Rs 400 crore through IPO
Mar
22, 2017 - Mar 24, 2017
About The Company
The company is one of the leading organised retailers of home improvement and building products in India based on number of stores, operating under the trade name Shankara Build Pro. As on August 31, 2016, it operated 98 Shankara BuildPro stores spread across 10 states in India. As on September 24, 2016, it operated 100 Shankara BuildPro stores spread across 10 states in India. It caters to a large customer base across various end-user segments in urban and semi-urban markets through its multi-channel sales approach, processing facilities, supply chain and logistics capabilities.
It serves home owners, professional customers (such as architects and contractors), and small enterprises, through retail stores. Additionally, in the semi urban markets, it also caters to specific agricultural requirements of individual customers and small enterprises. Under retail operations, it offers a comprehensive range of products at its stores, including 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. The company carries reputed third party brands such as Sintex, Uttam Galva, Uttam Value, Futura, APL Apollo and Alstone and own brands such as Century Roof, Ganga and Loha at the retail stores.
In Fiscal 2016, its revenue
from retail sales was ‘8,077.56 million which contributed
39.68% of its total sales as of Fiscal 2016 representing a CAGR of 28.67%, as
compared to its revenue from retail sales in Fiscal 2012, being ‘2,947.20 million. The
balance revenue during this period comprised of enterprise sales, contributing 32.20% and channel sales
contributing 28.13% of the total revenue.
It has backward integrated through its processing facilities in select building products like steel pipes, colour coated roofing sheets, bright rods, galvanized strips and cold rolled strips. Its sells these products under its own brands like Century Roof, Ganga, Loha, Taurus and Prince Galva through the retail and branch network. Its own processing facilities help to offer customized solutions and meet quality standards as well as timely delivery requirements of its customers. It has 11 processing facilities having a total installed capacity of 2,86,200 MTPA operating at an average capacity utilization of 93.75% in Fiscal 2016.
To cater to its customers,
it has a robust logistics network which, as of August 31, 2016, consisted
of 58 warehouses aggregating 0.58
million sq. ft., and a fleet of 47 owned trucks to augment last mile
delivery. A large part of its
warehousing backbone is owned which ensures stability of operations. It also
helps in catering to the requirements of its
retail outlets. With an aim to
offer a comprehensive range of products, it has expanded its product offerings
and as of August 31, 2016, product
portfolio comprised of 17,842 SKUs.
Company Promoter
Sukumar Srinivas.The Promoter,
Sukumar Srinivas is an alumnus of the Indian Institute of Management Ahmedabad,
and a first generation entrepreneur.
Company Financials
Summary of financial information
|
Particulars
|
For the year/period ended (in Rs. Million)
|
|||||
|
31-Dec-16
|
31-Mar-16
|
31-Mar-15
|
31-Mar-14
|
31-Mar-13
|
31-Mar-12
|
|
|
Total Assets
|
6,046.35
|
5,913.15
|
5,505.20
|
5,956.44
|
5,724.80
|
4,559.90
|
|
Total Revenue
|
14,576.79
|
17,750.07
|
17,204.70
|
18,840.21
|
17,024.89
|
13,855.32
|
|
Profit After Tax (PAT)
|
137.38
|
109.77
|
42.47
|
193.38
|
271.24
|
277.75
|
Objects of the Issue
The
main objects of the issue are:
1. 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
4. Enhancement
of Company’s brand name and creation of a public market for the Equity Shares in India.
ISSUE DETAILS
|
ISSUE OPENS / CLOSES
ON
|
Mar 22, 2017
- Mar 24, 2017
|
|
ISSUE SIZE
|
Fresh
Issue of Rs. 45 crores and Offer for sale of 816252 shares by the
Promoter and 5705488 shares by selling shareholders.
|
|
PRICE BAND
|
Rs. 440 -
Rs. 460 Per Equity Share
|
|
MARKET LOT
|
32 Shares
|
|
LISTINGS
|
BSE, NSE
|
|
FACE
VALUE
|
Rs.10
|
|
BRLM
|
IDFC Bank, Equirus
capital, HDFC bank
|
|
ISSUE
TYPE
|
Book Build Issue IPO
|
|
BUSINESS
|
Mfrs of building
products -TMT, Cement, Scaffolding, Msand,
Steel Pipes, Roofing Solution, Plumbing, Electrical, Paints, Tiles, Exterior
cladding, Solar products, etc
|
|
REGISTRAR
|
Karvy
|
An indicative timetable in respect of the
Offer
- · 21th March – Anchor Investors
- · Bid/Offer Opens On: Mar 22, 2017
- · Bid/Offer Closes On: Mar 24, 2017
- · Finalisation of Basis of Allotment: On or about Mar 30, 2017
- · Initiation of refunds: On or about Mar 31, 2017
- · Credit of Equity Shares to demat accounts: On or about Apr 03, 2017
- · Commencement of trading of the Equity Shares: On or about Apr 05, 2017