Street signs: Domestic institutions book profits in March
IPO of Shankara Building Products managed to garner healthy subscription of 40 times last week26-03-2017
26-03-2017
Shankara Building IPO subscribed 41.60 times on last day
The Shankara Building IPO got subscribed 41.60 times on the last day of the issue on Friday following robust investor demand25-03-2017
Shankara Building IPO subscribed fully on Day 2
The Shankara Building IPO received bids for 53,02,400 shares against the total issue size of 52,94,467 shares till noon23-03-2017
Long-term investors can look at Shankara Building Products' IPO
Shankara Building Products (Shankara) is a South-based home improvement and building materials retailer. Through its 103 stores across India, the company offers various products namely cement, structural steel, pipes and tubes, roofing solutions, tiles, sanitary ware and lighting, amongst others. It also caters to the enterprise and channel segments wherein it sells its products to large end-users such as contractors, dealers and other retailers. However, in recent years, the company has been focussing on ramping up its presence in the higher-margin retail segment (accounts for 42 per cent of revenues currently). This has also helped margins, which should rise further as the share of retail business increases. Considering reasonable valuations and healthy growth prospects, long term investors can subscribe to the issue. At the upper price band and post annualising the nine months FY17 earnings, the company is valued at 18 times earnings on a post-IPO basis. While there is no...22-03-2017