Being a first-of-its-kind, the recent IPO has been a big high for Shankara Building Products. Sukumar Srinivas, Managing Director, Shankara Building Products, highlights the company's plans...
Amount to be raised and utilisation plans: We have raised Rs 345 crore, largely to give an exit to our private equity firm Fairwinds Trustees Services (formerly known as Reliance Alternative Investments Services). The CAPEX plan for the year is at around Rs 20 crore; in terms of the working capital, we are at approximately Rs 250 crore.
Leveraging the IPO for debt removal: The current debt/equity ratio is .63 approximately. The primary amount of Rs 45 crore raised through IPO will be used to wave off high-cost debt.
Impact on credit ratings: At present, we are at a BBB+, and we have shared the company's financial results as of March, with CRISIL, for revision of the rating. Considering that our topline growth was about 15 per cent, we expect the rating to be good.
Current expansion plans: We are currently planning on an expansion of 15-20 stores in the retail portfolio for FY2017-18. We are one of the leading organised retailers of home improvement and building products in India based on number of stores, operating under the trade name 'Shankara Buildpro'.
We cater to a large customer base across various end-user segments in urban and semi-urban markets through our multi-channel sales approach, processing facilities, supply chain and logistics capabilities.