Synopsis:
Shankara Building Products will demerge its core retail and trading business into Shankara
During Monday’s trading session, shares of one of India’s leading building materials marketplaces are in focus on the stock exchanges, following the announcement of 24th September 2025 as the record date for the demerger of its trading business into a separate entity.
At 02:34 p.m., the shares of Shankara Building Products Limited were trading in the green at Rs. 948.85 on BSE, as against its previous closing price of Rs. 946.2, with a market cap of Rs. 2,301 crores. The stock has delivered positive returns of over 69 percent in one year, but has fallen by around 8 percent in the last one month.
What’s the News
Shankara Building Products had proposed the demerger of its core business, which includes retail and trading of building materials, into its wholly owned subsidiary, Shankara Buildpro Limited. The demerger is intended to allow the company to focus more effectively on its diverse business activities and create more transparent structures for stakeholders.
On 22nd August 2025, the National Company Law Tribunal (NCLT), Bengaluru Bench, passed the order approving and sanctioning the scheme. The demerger is expected to improve corporate governance within the separated entities, ensuring that the board and management are aligned with the specific interests and goals of their businesses.
Following approval by the Board, the company filed the scheme of arrangement with the stock exchanges in December 2023. Shankara Building Products Limited (SBPL) is set to spin off its trading business into a separate company, Shankara Buildpro Limited and has fixed 24th September 2025 as the record date to identify shareholders of SBPL who will be entitled to receive fully paid-up equity shares of Rs. 10 each in Shankara Buildpro.
Under the proposed arrangement, one fully paid-up equity share of Rs. 10 in Shankara Buildpro Limited will be allotted for every one fully paid-up equity share of Rs. 10 held in SBPL.
Presently, Shankara operates across multiple segments, including the manufacturing of steel tubes and cold-rolled strips, and the production of colour-coated profiles. These activities are housed in multiple subsidiaries.
The core business of Shankara is organised retailing and distribution of steel products and numerous building materials. Therefore, the Management proposed a demerger of its core business into a separate entity. As a result, the restructuring will create two entities: Shankara Building Products Limited, which will continue as the legacy company housing the three manufacturing subsidiaries, and Shankara Buildpro Limited (Buildpro), which will manage the core retail and distribution business.
Post-demerger, both entities will have clearly defined goals and operational responsibilities. Management and operations teams will be able to allocate resources more efficiently, improving overall performance. Each business will have the autonomy to pursue its individual objectives and align more closely with industry trends. Financials & More:
Shankara Building Products reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 27 percent, from Rs. 1,291 crores in Q1 FY25 to Rs. 1,644 crores in Q1 FY26. Likewise, the company’s net profit increased during the same period from Rs. 16 crores to Rs. 32 crores, representing an impressive rise of nearly 100 percent YoY.
Shankara Building Products Limited, one of India’s leading organised retailers of home improvement and building products, deals with a number of product categories, including structural steel, cement, TMT bars, hollow blocks, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, plumbing, tiles, sanitary ware, water tanks, plywood, kitchen sinks, lighting and other allied products.
Written by Shivani Singh
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