Shankara raises Rs105cr from APL Apollo Mart; stock skids ~2%

24 Mar 2022 , 01:26 PM

Shankara Building Products Limited’s Board has approved the issue of preferential share warrants worth Rs105 crore to APL Apollo Mart Ltd. (a wholly-owned subsidiary of APL Apollo Tubes Limited).

The Company has approved the preferential issue of 14,00,000 share warrants convertible into equity shares (which is 5.77% of fully diluted capital upon conversion) for an offered price of Rs750 per warrant to APL Apollo Mart Ltd. (a wholly-owned subsidiary of APL Apollo Tubes Limited).

APL Apollo will invest Rs180.50 crore immediately and the remaining investment of Rs78.70 crore will be completed within 18 months. Apollo Mart’s total holding after this transaction will be 9.90% on a fully diluted basis.

This transaction will ensure consistency in the supply chain as Shankara is a key distributor of APL Apollo’s products. The company will also use a part of this fund in working capital requirements.

APL already holds 10,00,000 shares (4.38%) worth Rs755 each totalling Rs75.50 crore.

Shankara Building Products is currently trading at Rs800.75 down by Rs12.5 or 1.54% from its previous closing of Rs813.25 on the BSE. It touched intraday high and low of Rs813.10 and Rs796 respectively.