Shankara Building Products Limited has informed the Exchange about Scheme of Arrangement
SHANKARA · price
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Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Bengaluru Bench has approved the Scheme of Arrangement between Shankara Building Products Limited (Demerged Company) and Shankara Buildpro Limited (Resulting Company). Under the scheme, the entire Trading Business of Shankara Building Products will be demerged into Shankara Buildpro on a going-concern basis with effect from the appointed date of April 1, 2024. Shareholders will receive 1 equity share of Rs. 10 in Shankara Buildpro for every 1 equity share of Rs. 10 held in Shankara Building Products (1:1 ratio). Shankara Buildpro, which is currently 99.94% owned by Shankara Building Products, will apply for listing on stock exchanges after the scheme becomes effective. The scheme will become operational only after the certified copy of the NCLT order is filed with the Registrar of Companies, Bengaluru.
Existing shareholders of Shankara Building Products will end up holding shares in two listed companies — one focused on manufacturing and the other on trading — giving them more flexibility and unlocking the standalone value of the trading business. Once effective, this typically leads to a re-rating event, though short-term price action may remain range-bound until the scheme formally takes effect and the new entity is listed.