Shankara Building gains 38% on debut

Home improvement and building products firm Shankara Building Products made a stellar trading debut on Wednesday. Shares of the company closed 38 per cent above its initial public offering (IPO) price. The stock closed at Rs 632.8 on the BSE, up Rs 172.8 or 37.57 per cent over the issue price of Rs 460.  Market participants said the positive response for Shankara on its listing day was on expected lines, given the high investor demand witnessed during the IPO. The Rs 345-crore IPO was subscribed more than 40 times. IDFC Bank, Equirus Capital and HDFC Bank were the book-running managers for the issue.  The IPO comprised of Rs 300-crore worth secondary share sale by multiple investors, including private equity (PE) player Fairwinds. There was also a fresh issue worth Rs 45 crore in the IPO, which was to be used for repayment of loans The company raised Rs 103 crore by allotting shares to anchor investors. Institutions that are part of the anchor book include Singapore-based Flowering Tree Investment Management, Nomura Singapore HSBC Global Investment Fund and Franklin India.