The initial public offer (IPO) of Shankara Building Products received bids for 1.18 crore shares compared to 52.94 lakh shares on offer on the second day of bidding for IPO today, 23 March 2017, data on NSE showed as at 16:30 IST. The IPO was subscribed 2.25 times. The IPO closes tomorrow, 24 March 2017.

Ahead of the IPO, the IPO committee of board of directors of Shankara Building Products allocated 22.5 lakh shares to sixteen anchor investors at Rs 460 per share, a higher end of IPO price band aggregating Rs 103.5 crore.

The offer comprises of a fresh issue of shares aggregating up to Rs 45 crore and an offer for sale (OFS) of up to 8.16 lakh shares by its promoter, Sukumar Srinivas and up to 57.05 lakh shares by Fairwinds Trustees Services, acting in the capacity of trustee of reliance alternative investments fund-private equity scheme I (collectively the selling shareholders).

The offer will constitute at least 25% of the company's post-offer paid-up equity share capital. The price band for the IPO was fixed at Rs 440 to 460 per share.

The company intends to use the proceeds from the offer towards repayment or pre-payment of loans and general corporate purpose.

Shankara Building Products reported consolidated net profit of Rs 41.60 crore on net sales of Rs 1709.80 crore in the nine months ended 31 December 2016.

Promoted by first generation entrepreneur Sukumar Shrinivas, Bengaluru based Shankara Building Products (SBP) is one of the leading organized retailers of home improvement and building products in India, operating under the trade name, Shankara BuildPro, since the past two decades.

As on 31 December 2016, it operated 103 Shankara BuildPro stores spread across nine states and one union territory in India. The company has product portfolio of more than 74 products serving 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. The company also provide delivery and facilitate installation services for select product categories.