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Since listing on April 5, 2017, the stock price of the company zoomed 124% from Rs 633, as compared to 6% rise in the S&P BSE Sensex. It soared 208% against its initial public offer (IPO) price of Rs 460 per share. The company raised Rs 345 crore through IPO, which was subscribed 41.88 times.
Post listings, the institutional investors led by mutual funds and foreign portfolio investors (FPIs) increased their stake in company by nearly 11 percentage points.
According to shareholding pattern filed by the company, total institutional investors holding in SBPL increased by 10.96 percentage points to 23.71% in June quarter. They held 12.75% stake at the end of March quarter.
Mutual funds raised their holdings in the company to 12.24% from 5.06%, while FPIs to 7.27% (4.7%) and of alternate investments funds to 4.17% (1.58%), data shows.
For June (Q1FY18) quarter, SBPL had reported 32.7% year on year (YoY) jump in its profit after tax at Rs 17.2 crore. Total income grew 4.4% at Rs 592 crore on YoY basis. EBITDA ((earnings before interest, taxation, depreciation and amortisation) margin improved 78 bps to 6.6% in Q1FY18.
The company is a leading organized retailer of home improvement and building products in India. It has recently started new processing facility in Secunderabad in the state of Telangana to capitalize on the growing requirements of the region.
Further the company has relocated processing capacity from Surat in Gujarat to Chegunta in Hyderabad in the state of Andhra Pradesh.
The relocation will ensure better utilization levels on back of increased availability of raw materials which was hampering production and sales in Surat. Increased utilization levels will bring in higher efficiency thereby improving operating performance going forward, the company said in a regulatory filing.
At 12:06 pm; the stock was up 6% at Rs 1,394 on BSE against 0.48% decline in Sensex. The trading volumes on the counter jumped more than three-fold with a combined 959,542 shares changed hands on BSE and NSE so far.