Shankara Building Products Limited , a prominent player in the building materials retail sector, has announced significant changes in its top management as part of a broader corporate restructuring initiative.

CFO Transition

Alex Varghese, the Chief Financial Officer (CFO) of Shankara Building Products Limited, has tendered his resignation from the company. According to the official communication to the stock exchanges, Varghese will be relieved from his duties effective October 3, 2025. This move comes as part of his transition to a new role as the CFO of Shankara BuildPro Limited, described as the "Resulting Company" in the corporate announcement.

Corporate Restructuring

The resignation is linked to a larger corporate restructuring effort, specifically mentioned as a "Composite Scheme of Arrangement" between Shankara Building Products Limited (referred to as the 'Demerged Company') and Shankara BuildPro Limited (the 'Resulting Company'). This scheme suggests a significant reorganization within the Shankara group of companies.

Additional Management Changes

The LODR data reveals that it's not just the CFO position that's undergoing changes. Ereena Vikram, the Company Secretary and Compliance Officer, has also submitted her resignation, effective on the same date as Varghese. She too will be transitioning to Shankara BuildPro Limited in a similar capacity.

Compliance and Future Appointments

Shankara Building Products has assured stakeholders that it is in the process of appointing new Key Managerial Personnel (KMP) as required under the Companies Act, 2013 and SEBI Regulations. The company has committed to making these appointments within the stipulated time frame prescribed by applicable laws.

Management's Statement

Sukumar Srinivas, the Managing Director of Shankara Building Products Limited, signed off on the official communications regarding these changes. The company expressed gratitude to both Alex Varghese and Ereena Vikram for their services and wished them well in their new roles at Shankara BuildPro Limited.

These management changes and the underlying corporate restructuring indicate a significant strategic shift for Shankara Building Products Limited. Stakeholders and market observers will be keenly watching how these changes impact the company's operations and market position in the coming months.

Shankara Building Products Limited (SBPL) has issued crucial guidance to its shareholders regarding the apportionment of acquisition costs for equity shares following its demerger with Shankara Buildpro Limited (SBL). This move comes in the wake of a significant corporate restructuring sanctioned by the National Company Law Tribunal.

Demerger Details

The National Company Law Tribunal, Bengaluru Bench, approved the scheme of arrangement on August 21, 2025. This arrangement involves the transfer of SBPL's trading business undertaking to SBL. Under the terms of the demerger:

• Shareholders will receive one fully paid-up equity share of Rs 10 face value in SBL for every share held in SBPL.
• The record date for this share allocation is set for September 24, 2025.

Cost Allocation Guidelines

SBPL has provided a clear framework for shareholders to apportion their pre-demerger acquisition costs:

• 34.19% for Shankara Building Products Limited shares
• 65.81% for Shankara Buildpro Limited shares

This allocation is crucial for shareholders when calculating their cost basis for future capital gains considerations.

Example of Cost Allocation

To illustrate the application of these guidelines, SBPL provided an example:

Tax Implications

The company has clarified several important tax-related points:

1. The share issuance is not taxable under Section 47(vid) of the Income Tax Act.
2. For capital gains purposes, the acquisition date of SBL shares will be considered the same as the original purchase date of SBPL shares.

Regulatory Compliance

SBPL emphasized that this guidance is for general information and does not substitute professional tax advice. The company has duly informed the BSE Limited and the National Stock Exchange of India Limited about these developments, ensuring transparency and regulatory compliance.

Shareholder Action Required

Shareholders are advised to carefully consider this information for their tax planning and record-keeping purposes. While the company has provided this guidance, it recommends that shareholders seek independent opinions if needed, particularly given the complexity of tax laws and potential future changes in regulations.

This corporate action represents a significant change for SBPL shareholders, requiring careful attention to the cost allocation process for their investment portfolios.