Shankara Building Products block deal: Promoter Sukumar Srinivas divests 7.8% stake; check details

BSE data show that promoter and MD Sukumar Srinivas divested a 7.8% stake in the company for ₹176 crore through open market transactions.

Following the stake sale, the promoters' holding in Shankara Building Products has slipped to 41.41% from 49.25% earlier.

As per the data, Srinivas offloaded 19 lakh shares of Shankara Building Products at an average price of ₹926.1 apiece, taking the combined value to ₹175.95 crore.

Meanwhile, Chartered Finance and Leasing, Singularity Equity Fund I, Ace Infracity Developers, Sageone Investment Managers LLP, Riti Foundation, RR Foundation, S R Foundation and Swati Foundation purchased these shares.

Shares of the company on Monday ended at ₹997.35 apiece on the BSE, up 6.62%.

In the Q4 earnings call, Shankara Building Products said that the steel sector faced significant headwinds throughout the year. Realisations have declined meaningfully, which has posed a challenge for the company's top line growth and weighed on its margins.

"Despite these challenges, Shankara has shown its resilience and recorded a strong 30% volume growth in FY25. Structural steel tubes and pipes in particular have continued to demonstrate healthy demand, and we have been able to capture this opportunity and deliver healthy volume growth in our business," said Dhananjay Mirlay Srinivas, Vice President.

Revenue from our steel division was up 19% year-on-year in Q4 and 17% for the full year. With the difference between volume and value growth directly attributable to lower steel prices, the VP added.

"Turning to profitability, our EBITDA margins improved to 3.2% in Q4 FY2, up from 2.84% in Q3 FY25. Consequently, we posted a 3.02% EBITDA for the full year FY25 as against 2.95% EBITDA in 9MFY25. While the sequential improvement is encouraging, margins remain slightly lower on a year-on-year basis, both for Q4 and for the full year. This is primarily due to the inventory losses we incurred up to nine months in FY25, which amounted to approximately 22 crores rupees," the VP said.