Shankara Building Products Share Price Falls 75% Post-Demerger | Stock Market Today

Market Performance

Wednesday, September 24, witnessed a sharp adjustment in Shankara Building Products (SBPL) share price. The stock tumbled 75% from its last close of ₹990.50 on the NSE.

At first glance, such a steep drop might alarm investors. But in reality, this movement is a technical adjustment, not a reflection of poor financial health or market sentiment. The market is simply factoring in the company’s recently approved Scheme of Arrangement with Shankara Buildpro (SBL).

Main News: Understanding the Price Adjustment

The significant fall in SBPL’s share price is linked to the demerger of its trading business. Under the arrangement:

• Shareholders of SBPL were allotted one share of Shankara Buildpro (SBL) for every one share held in SBPL.
  
  
• With Wednesday being the record date, the stock adjustment is now visible in market trading.
  
  

The demerger splits the company’s value:

• 65.81% of the original value is now attributed to Shankara Buildpro (SBL).
  
  
• 34.19% remains with Shankara Building Products (SBPL).
  
  

For example, a share priced at ₹1,000 before the demerger would now reflect approximately ₹341.90, while the remaining ₹658.10 is represented through SBL shares. This explains the 75% price drop, which is not an actual loss but a reallocation of shareholder value across two entities.

On the day of adjustment, SBPL’s share price did touch the 5% lower price band of ₹242.25, against its adjusted price of ₹255, reflecting normal trading movements post-demerger.

Company Details

Shankara Building Products has continued to demonstrate strong financial performance despite the structural changes:

• Q1 FY26 Net Profit: ₹32 crore, up 102% YoY, though down 14% sequentially
  
  
• Revenue from Operations: ₹1,644 crore, up 27% YoY, flat QoQ
  
  

The company’s performance highlights that the demerger is a strategic restructuring, not a financial setback. Investors now hold stakes in two companies, with the combined value of their holdings remaining essentially unchanged.

Summary

• Shankara Building Products share price fell 75% due to the demerger with Shankara Buildpro.
  
  
• Shareholders received one SBL share per SBPL share, reallocating the company’s total value.
  
  
• Post-demerger, SBPL retains 34.19% of its original value, while 65.81% is represented through SBL.
  
  
• Financially, the company continues to show strong growth, with Q1 FY26 net profit up 102% YoY and revenue rising 27% YoY.
  
  

The stock market today reflects the technical adjustment, providing clarity to investors about the distribution of value between the two entities.