Bangalore-based retailer Shankara BuildPro, which is into home improvement and building products, has filed for an initial public offering to raise about Rs 450 crore.
According to market sources, the company has filed the draft red herring prospectus (DRHP) with the market watchdog Sebi today and proposes to mop up between Rs 400 crore and Rs 450 crore through the sale, which will involve promoters and investors diluting their stakes to the tune of 35 per cent.
The proposed IPO will enable private equity firm Fairwinds, which had pumped in close to Rs 120 crore in 2011, to exit Shankara, the sources told PTI here today.
Shankara BuildPro, founded by Sukumar Srinivas, who is an alumnus of the IIM-Ahmedabad, two decades ago, had reported a net profit of Rs 41.64 crore on an income of Rs 2,036 crore in financial year 2016.
The company operates 100 retail stores under the label of Shankara BuildPro spread across 10 states across the Southern, Western and Eastern markets catering to a large customer base across various end-user segments in urban and semi-urban markets through its multi-channel sales approach, processing facilities, supply-chains and logistics capabilities.
Shankara has roped in IDFC Bank and Equirus Capital as lead bankers for the issue along with HDFC Bank co-manager.
The company has 11 processing facilities having a total installed capacity of 2.86 million tonne and is operating at an average capacity utilisation of 93.75 per cent so far this year.
The company has 58 warehouses admeasuring 0.58 million sqft, and an owned fleet of 47 trucks for last mile delivery and a product portfolio comprising 17,842 SKUs.
The company is bullish about its future given the robust growth in housing demand, coupled with the large market for home improvement products, including increasing demand for home solutions which have created a need for organized specialty home improvement and building product stores.
Apart from serving home owners, it also serves in the semi-urban markets specific agricultural requirements of individual customers and small enterprises.
In addition to retail, it also serves the enterprise and channel sales segments where it caters primarily to large end-users, contractors, and OEMs.
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