Archive · 24 Sep 2025
Shankara Building Products Share Price Plummets Due to Demerger
Imagine a company splitting into two.
Shankara Building Products (SBPL) did this, giving part of its business to a new company called Shankara Buildpro (SBL).
Because of this split, the share price of SBPL dropped by 75%.
However, it's not a loss!
Shareholders now own shares in both SBPL and SBL, and the total value of their investments remains the same.
The share price drop just reflects the company's new structure.
Even though the stock price fell, SBPL's profits and revenue increased significantly.
Shankara Building Products' share price fell 75% due to a demerger.
The fall is not a result of poor financial performance.
Shareholders received shares in a new entity, Shankara Buildpro (SBL).
The drop is a technical adjustment reflecting the business reorganization.
Shankara Building Products reported a 102% rise in net profit for FY26 Q1.
- Who
- Shankara Building Products and its shareholders.
- What
- Experienced a 75% decrease in share price.
- When
- September 24 (record date).
- Where
- On the National Stock Exchange (NSE).
- Why
- Due to a technical adjustment from a demerger, not poor performance.
- Company
- Shankara Building Products (SBPL)
- Share Price Drop
- 75%
- Reason
- Technical adjustment due to demerger
- New Entity
- Shankara Buildpro (SBL)
- FY26 Q1 Net Profit (YoY)
- ₹32 crore, up 102%
- FY26 Q1 Revenue (YoY)
- ₹1,644 crore, up 27%