Key Quantitative Figures

  • Offer Price: ₹150 per fully paid-up equity share
  • Offer Size: 63,04,825 equity shares representing 26.00% of paid-up equity share capital
  • Maximum Consideration: ₹94,57,23,750 (assuming full acceptance)
  • Current Promoter Holding: 1,20,08,649 shares (49.52%)
  • Post-Offer Promoter Holding: 1,83,13,474 shares (75.52%)
  • Paid-up Equity Capital: ₹24,24,93,260 divided into 2,42,49,326 shares of ₹10 each
  • Escrow Amount Deposited: ₹23,64,30,938 (25% of maximum consideration)

Dates of Action

  • Public Announcement Date: July 15, 2026
  • Detailed Public Statement Date: July 22, 2026
  • Draft Letter of Offer Filing: July 29, 2026
  • Identified Date: August 21, 2026 (for shareholder identification)
  • Letter of Offer Dispatch: By August 31, 2026
  • Tendering Period: September 7, 2026 to September 21, 2026
  • Settlement Completion: By October 6, 2026

Parties Involved

Acquirer: The Ballygunge Family Trust (Registered at 490, 14th Main, 3rd Block, Koramangala, Bangalore)

Persons Acting in Concert (PACs):

  • Mr. Sukumar Srinivas (PAC 1) - Managing Trustee
  • Ms. Parwathi Srikanth Mirlay (PAC 2) - Co-Trustee
  • Mr. Dhananjay Mirlay Srinivas (PAC 3) - Beneficiary
  • Shankara Holdings Private Limited (PAC 4)

Target Company: Shankara Building Products Limited (Registered at G-2 Farah Winsford, No.133, Infantry Road, Bangalore)

Manager to Offer: Corporate Professionals Capital Private Limited

Registrar to Offer: Beetal Financial & Computer Services Private Limited

Escrow Bank: Kotak Mahindra Bank Limited, Koramangala Branch

Buying Broker: Nikunj Stock Brokers Limited

Purpose and Rationale

The open offer is being made to rectify past non-compliances of SEBI (SAST) Regulations and to consolidate promoter and promoter group shareholding in the Target Company. The acquisition is intended to strengthen their stake and reinforce long-term commitment to the company's growth and development.

Financial Arrangements

  • Escrow Agreement dated July 15, 2026 with Kotak Mahindra Bank
  • ₹23.64 crore deposited in escrow account (25% of maximum consideration)
  • Additional funding requirements to be met through internal resources of acquirer and PACs
  • Financial adequacy certified by CA N. Amarnath of Vasanth & Co.

Net Worth of Parties (as of March 31, 2026)

  • The Ballygunge Family Trust: ₹196.57 crore
  • Mr. Sukumar Srinivas: ₹1,139.38 crore
  • Ms. Parwathi Srikanth Mirlay: ₹42.55 crore
  • Mr. Dhananjay Mirlay Srinivas: ₹15.26 crore
  • Shankara Holdings Private Limited: ₹1.24 crore (net worth)

Target Company Financials (Consolidated)

FY 2026: Revenue ₹1,370.75 crore, PAT ₹3.84 crore, EPS ₹1.58

FY 2025: Revenue ₹1,364.82 crore, PAT (₹0.79 crore), EPS (₹0.33)

FY 2024: Revenue ₹4,833.68 crore, PAT ₹81.13 crore, EPS ₹34.67

Shareholding Pattern Impact

  • Pre-offer public shareholding: 1,22,40,677 shares (50.48%)
  • Post-offer public shareholding: 59,35,852 shares (24.48%)
  • This reduction below 25% minimum public shareholding requires acquirer to take steps to comply with SEBI LODR Regulations

Procedure for Acceptance

  • Tendering through BSE acquisition window only
  • Physical shareholders must submit share certificates, transfer deeds, and completed acceptance forms
  • Demat shareholders to tender through their brokers with early pay-in mechanism
  • No withdrawal allowed during tendering period
  • Settlement through clearing corporation with direct payout to shareholders

Risk Factors

  • Offer may be withdrawn if statutory approvals are refused
  • Possible delay in payment if regulatory approvals delayed
  • Acceptance on proportionate basis if oversubscribed
  • Public shareholding may fall below regulatory minimum requiring corrective action
  • Physical share documents held in trust during offer period

Taxation Aspects

  • Long-term capital gains taxable at 12.5% + cess for off-market transactions
  • Short-term capital gains taxable at normal rates
  • No TDS for resident shareholders
  • TDS applicable for non-resident shareholders as per IT Act provisions
  • No securities transaction tax applicable

Documents for Inspection

Available at manager's office include net worth certificates, escrow agreement, financial statements, public announcements, and SEBI observation letter.