NCLT approves Shankara Building Products demerger scheme

Shankara Building Products Limited (SBPL) has received the certified true copy of the National Company Law Tribunal, Bengaluru Bench (NCLT) order, approving the Scheme of Arrangement between SBPL and Shankara Buildpro Limited (SBL). This approval, dated August 21, 2025, follows the initial application filed on February 14, 2025. The scheme involves the demerger of SBPL's trading business into SBL, with an appointed date of April 1, 2024.

The NCLT order mandates that the scheme will become effective upon filing the certified copy with the Registrar of Companies, Bengaluru, Karnataka. Both companies are directed to ensure compliance with all statutory requirements, including increasing SBL's authorized share capital and settling outstanding statutory dues totaling INR 13.48 crores, INR 15 lakhs for income tax, INR 1.68 crores for GST, and INR 21.33 crores for Micro, Small and Medium Enterprises. Additionally, the scheme will involve the issuance of one equity share of INR 10 each in SBL for every one equity share of INR 10 held in SBPL to SBPL’s shareholders.

The approved scheme also requires SBPL to deposit INR 75,000 with the Ministry of Corporate Affairs and INR 25,000 with the Prime Minister National Relief Fund. The petitioner companies' undertakings regarding employee interest protection and compliance with accounting standards were accepted by the tribunal.