Shankara details share cost apportionment following demerger

Shankara Building Products Limited (SBPL) has issued guidance to its shareholders regarding the apportionment of the cost of acquisition of equity shares following a scheme of arrangement with Shankara Buildpro Limited (SBL). The National Company Law Tribunal sanctioned the demerger on August 21, 2025, facilitating the transfer of SBPL's trading business undertaking to SBL.

Under the scheme, SBPL shareholders will receive one fully paid-up equity share of SBL (face value INR 10) for every one fully paid-up equity share of SBPL (face value INR 10) held as of the record date, September 24, 2025. For the purpose of determining the post-demerger cost of acquisition, shareholders are advised to apportion 34.19% to the remaining SBPL shares and 65.81% to the newly acquired SBL shares.

The issue of SBL shares is not considered a transfer and is therefore not taxable in the hands of equity shareholders, with the acquisition date for capital gains purposes remaining that of the original SBPL shares.