Shankara Building Products shareholders allotted 2.42 crore shares in demerged entity Shankara Buildpro

Disclaimer This is an AI-assisted live blog with updates sourced from multiple news outlets and agencies Disclaimer

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shankara Building Products Ltd has announced that shareholders have been allotted equity shares in Shankara Buildpro Ltd pursuant to the recently approved Scheme of Arrangement between the two entities.

In a filing to the exchanges, the company said Shankara Buildpro’s board, at its meeting on September 26, 2025, approved the allotment of 2,42,49,326 equity shares of Rs 10 each to eligible shareholders of Shankara Building Products. Entitlement was determined on the record date of September 24, 2025. Shankara Buildpro will now submit listing applications with both BSE and NSE in due course.

The allotment follows the demerger scheme sanctioned by the National Company Law Tribunal, Bengaluru Bench, on August 21, 2025. Under the scheme, the undertaking engaged in the Trading Business was transferred from Shankara Building Products to Shankara Buildpro. Shareholders of Shankara Building Products received one fully paid-up equity share of Shankara Buildpro (face value Rs 10) for every share held in the parent company.

As per guidance issued with the scheme, shareholders are advised to apportion their pre-demerger cost of acquisition between the two companies in the ratio of 34.19 percent for Shankara Building Products and 65.81 percent for Shankara Buildpro. The issue of shares in the demerged entity is not treated as a taxable transfer under Section 47(vid) of the Income Tax Act, 1961, and for capital gains purposes, the date of acquisition of Shankara Buildpro shares will be deemed to be the date of acquisition of the original Shankara Building Products shares.

Shares of Shankara Building Products were locked at the 5 percent lower circuit on Friday at Rs 218.65. Over the past year, the stock has declined by nearly 59 percent. The stock has traded between Rs 218.65 and Rs 1,209.80 during the past year. The company’s stock currently trades at a price-to-earnings multiple of 5.64 and offers a dividend yield of 1.37 percent.