Shankara Building Products Limited (SBPL) has announced a significant corporate action, setting the stage for its demerger with Shankara Buildpro Limited. The company has fixed September 24, 2025, as the record date for this strategic move, marking a pivotal moment for its shareholders and the organization's structure.

Demerger Details

The Board of Directors of both Shankara Building Products Limited and Shankara Buildpro Limited have approved the scheme of arrangement for the demerger. Under this scheme:

• Shareholders of Shankara Building Products will receive one fully paid-up equity share of Shankara Buildpro Limited for every one equity share held in SBPL.
• The new equity shares will have a face value of Rs 10 each.
• The record date for determining eligible shareholders is set for Wednesday, September 24, 2025.

Listing and Regulatory Approvals

The newly issued equity shares of Shankara Buildpro Limited are slated for listing on both the National Stock Exchange of India Limited (NSE) and the BSE Limited. However, this listing is subject to applicable regulations and necessary regulatory approvals.

Corporate Communication

In a letter dated September 12, 2025, addressed to both the BSE and NSE, Ereena Vikram, Company Secretary & Compliance Officer of Shankara Building Products Limited, officially communicated the record date and details of the demerger. This communication follows the company's previous intimation on September 9, 2025, regarding the scheme of arrangement.

Implications for Shareholders

This demerger represents a significant development for SBPL shareholders:

1. Equity Distribution: Shareholders will maintain their stake proportion in the new entity.
2. Portfolio Diversification: Investors will now hold shares in two distinct companies, potentially offering diversified exposure within the building products sector.
3. Value Unlocking: The demerger may unlock value by creating two focused entities, each with its specific business objectives and strategies.

Investors and market participants are advised to keep a close watch on further announcements regarding the completion of the demerger process and the subsequent listing of Shankara Buildpro Limited shares on the stock exchanges.

As this corporate action unfolds, it marks a new chapter in the strategic direction of Shankara Building Products Limited, potentially reshaping its business structure and market positioning in the building products industry.

Shankara Building Products Limited (SBPL) has announced a significant corporate restructuring, with its demerger scheme involving Shankara Buildpro Limited taking effect on September 9, 2025. This strategic move marks a pivotal moment for both entities and their shareholders.

Demerger Details

The demerger scheme, which was formally filed with the Registrar of Companies, Karnataka on September 9, 2025, has an appointed date of April 1, 2024. Under the terms of the arrangement:

• Shankara Building Products Limited serves as the demerged company
• Shankara Buildpro Limited is designated as the resulting company

This corporate action is expected to streamline operations and potentially unlock value for shareholders of both entities.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SBPL has duly informed the stock exchanges—BSE Limited and the National Stock Exchange of India Limited—about the effective date of the scheme. The company's shares are listed under the security code 540425 on BSE and the symbol SHANKARA on NSE.

Next Steps for Shareholders

A crucial aspect of this demerger for investors is the pending announcement of the record date. This date will determine which shareholders of Shankara Building Products Limited are eligible to receive equity shares in Shankara Buildpro Limited. The company has stated that this information will be communicated in due course.

Management Statement

Ereena Vikram, Company Secretary & Compliance Officer of Shankara Building Products Limited, signed off on the regulatory filing, emphasizing the company's commitment to keeping shareholders and the market informed of these significant corporate developments.

Investors and market watchers will be keenly awaiting further details on the share allocation ratio. As the process unfolds, it will be important to monitor how this restructuring impacts the operational efficiency and market positioning of both Shankara Building Products and the newly formed Shankara Buildpro Limited.

The completion of this demerger represents a new chapter for Shankara Building Products Limited, potentially setting the stage for focused growth strategies in their respective business segments.