SHANKARA PIPES INDIA

Bangalore-based Shankara Pipes India has filed its DRHP with Sebi on December 19, 2007 to enter the capital market with an IPO of 61,15,000 equity shares of Rs 10 each with a premium to be decided through the book building process. The issue will constitute 30.01% of the post issue paid-up capital of the company. The shares are proposed to be listed on BSE and NSE. The BRLM to the issue is Keynote Corporate Services. The company incorporated in 1995, is engaged in the business of distribution of a wide range of steel tubes and pipes. Over the years, the company has emerged as one of the largest distributors in the organized sector. SPIL distributes ERW, GI and black steel tubes and pipes, seamless pipes, structural pipes, precision tubes, PVC pipes, steel structurals etc of all leading manufacturers like Tata Steel, Finolex, Tube Investments and Jindal. The company sells 12,000 MT of steel tubes and allied products per month through 19 offices, 16 formatted retail stores and 26 warehouses in 8 states. It intends to use the proceeds from the issue to part finance the setting up of more formatted retail stores and warehouses at a cost of Rs 65 crore and a manufacturing facility in AP at an outlay of Rs 3.30 crore. The company also plans to establish an e-portal service for providing IT enabled plumbing and fabrication services incurring an expenditure of Rs 2.55 crore. And for implementation of enterprise resource planning at a cost of Rs 3.50 crore. The company achieved total sales of Rs 502.21 crore for FY07, Rs 346.24 crore for FY06 and Rs 268.02 crore for FY05. During the same period, its net profit was Rs 8.70 crore, Rs 6.92 crore and Rs 5.15 crore respectively. For the six months ended September 30, 2007, the company achieved sales of Rs 281.60 crore and net profit of Rs 6.47 crore.

SHANKARA PIPES INDIA

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