Shankara Building’s IPO fully covered on second day

The initial public offering of Shankara Building Products Ltd, which is backed by Fairwinds Private Equity, was fully covered on the second day of the issue on Thursday.

The offering of 5.3 million shares, excluding anchor allotment, received bids for for a tad more than 13.51 million shares, or 2.48 times of the total, stock-exchange data showed.

Retail investors led the bidding on the second day, with the portion reserved for them getting covered 4.35 times. Institutional investors bid for 75% of the shares reserved for them while the quota for non-institutional investors comprising corporate bodies and wealthy individuals was subscribed about 46%.

On Wednesday, the IPO had crossed the half-way mark. The day before, the Bengaluru-based company had raised Rs 103.50 crore ($15.79 million) by selling 2.25 million shares to 16 anchor investors at the upper end of the Rs 440-460 price band.

The company, which was formerly known as Shankara Infrastructure Materials Ltd, is seeking a valuation of Rs 1,050 crore through the IPO .

The IPO comprises a fresh issue of shares worth Rs 50 crore and an offer for sale of nearly 1 million shares by managing director Sukumar Srinivas and 5.7 million shares by Fairwinds.

The Rs 354.4 crore-IPO, which will result in a 33.7% stake dilution, will close on Friday. The public offering would mark the third liquidity event for Fairwinds, which is currently managing the PE fund raised under Reliance Equity Advisors, according to VCCEdge, the data research platform of News Corp VCCircle.

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