MUMBAI, (GNI): Shankara Building Products Limited (the “Company” or “Issuer”) proposes to open on Wednesday, March 22, 2017, its initial public offering of equity shares of face value of Rs. 10 each (the “Equity Shares”) for cash including a premium) (the “Offer”) comprising of a fresh issue of Equity Shares aggregating up to Rs. 450 million (the “Fresh Issue”) and an offer for sale of up to 816,252 Equity Shares by the Company’s Promoter, Mr. Sukumar Srinivas, MD and up to 5,705,488 Equity Shares by Fairwinds Trustees Services Private Limited acting in the capacity of trustee of Reliance Alternative Investments Fund – Private Equity Scheme I (collectively the “Selling Shareholders”) (the “Offer For Sale”). The Bid/ Offer will close on Friday, March 24, 2017.
The Price Band for the Offer is fixed from Rs. 440 to Rs. 460 per Equity Share. The Offer will constitute at least 25% of the post Offer paid-up Equity Share capital of the Company.
The Book Running Lead Managers (“BRLMs”) to the Offer are IDFC Bank Limited, Equirus Capital Private Limited and HDFC Bank Limited.
The Company and the Selling Shareholders may, in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended (“SEBI ICDR Regulations”). The Anchor Investor Bid/ offer Period shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Tuesday, March 21, 2017. Bids can be made for a minimum of 32 Equity Shares and in multiples of 32 Equity Shares thereafter.
The Offer is being made through the Book Building Process in accordance with Regulation 26(1) of the SEBI ICDR Regulations, wherein 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”), provided that the Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”) at the Anchor Investor Allocation Price, out of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential investors, other than Anchor Investors, are required to mandatorily use the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”). For details, see “offer Procedure” on Page 198 of the Red Herring Prospectus dated March 13, 2017 (“RHP”).
The Equity Shares offered through the RHP are proposed to be listed on National Stock Exchange of India Limited and BSE Limited.ends