Shankara Buildpro will be dividing one share which currently carries a face value of ₹10 each into five shares which will now carry a face value of ₹2 each.
Shareholders who had shares of the company in their demat account as of Wednesday’s closing will be eligible for the stock split. Those who purchase shares of the company today, will not be eligible for the same.
Here’s how the stock split works:
For example, an investor has 100 shares of the company that currently are valued at ₹10,000 each. The company then announced a stock split in the ratio of 1:5, similar to Shankara Buildpro.
In such a scenario, a split of one share into five would mean that the 100 shares that the investor owns as on the record date, will be converted to 500 shares. However, the value of the shares will not change as the stock price will adjust according to the split ratio.
Therefore, the investor will now have 500 shares worth ₹10,000 instead of 100 as the face value will drop to ₹2 from ₹10, adjusting for the 1:5 split.
This is the first instance of Shankara Buildpro announcing a corporate action such as a stock split.
Shankara Buildpro is the demerged trading and marketplace entity of Shankara Building Products, which began trading on the bourses, both NSE and BSE on January 9 this year.Shareholders of Shankara Building Products, who owned shares of the company as on the demerger record date of September 24, 2025, received one share of Shankara Buildpro for every one share of Shankara Building Products that they held.
A company generally carries out a stock split to make the stock price more attractive for the smaller investor to buy and to improve liquidity within the stock as well.
At the end of the June quarter, over 22,000 small retail shareholders, or those with authorized share capital of up to ₹2 lakh, had at 14.6% stake in Shankara Buildpro. The September quarter shareholding is not yet disclosed. Promoters of the company have a 40.2% stake.
Shares of Shankara Buildpro ended little changed on Wednesday at ₹1,300. The stock has risen 60% so far in value this year.