Shankar Building Product IPO: Investors show bullish sentiment on company's growth prospect

Dynamic Equities | June 14, 2017, midnight

IPO:Shankar Building Product Ltd is entering into the primary market through an IPO to raise Rs.345 crores at the upper end. The price band of IPO is set between Rs.440 to Rs.460. From FY2015 to FY2016, PAT has increased by 158%. (FY2015 PAT: Rs.42.47 Millions and FY2016 PAT: Rs.109.77 Millions).

From FY2015 to FY2016, Reserve & Surplus of company has increased by more than 16% (FY2015: 2313.60 to FY2016: 2687.33). In current Share Holding Pattern, Promoters of company are carrying 62.4% and Others are 37.6%. Post IPO share holding pattern will stand as Promoters will carry 56.2% and Others 43.8%.

On the day of launch 22-Mar-17, the IPO was subscribed by over 51% in one day. It shows the bullish sentiment of investors and traders on company’s growth prospect. In such scenario, there is high probability that the IPO might be over subscribed. If an investor wants to invest in such IPO, try to apply for minimum quantity with high price band. The Lead manager to the offer are IDBI Bank, Equirus Capital, HDFC Bank and Registrar to offer is Karvy. The last date to subscribe for Shankara Building Product Ltd IPO is 24-Mar-17.

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