Description

Shankara Buildpro Limited (544517) to be excluded from multiple BSE indices including BSE SMALLCAP effective January 28, 2026, following demerger scheme and failure to hit lower circuit on January 22-23, 2026.

Summary

BSE Index Services has announced that Shankara Buildpro Limited (Scrip code: 544517) will be excluded from multiple BSE indices effective prior to market open on January 28, 2026. This action follows the company’s demerger scheme and the fact that the stock did not hit the lower circuit on January 22 and 23, 2026, as per the established removal process announced in Notice No: 20250403-46.

Key Points

  • Shankara Buildpro Limited (544517) to be removed from 10 BSE indices
  • Exclusion effective prior to trading open on Wednesday, January 28, 2026
  • Removal follows scheme of arrangement for demerger and post-listing of spun-off scrip
  • Stock did not hit lower circuit on Thursday, January 22, 2026 and Friday, January 23, 2026
  • Action included in end-of-day corporate action file (*.SDE)
  • Process was previously announced via Notice No: 20250403-46

Regulatory Changes

No new regulatory changes. This action implements the existing process for removal of spun-off scrips from BSE Indices following demerger schemes, as previously announced in Notice No: 20250403-46.

Compliance Requirements

  • Index fund managers tracking affected indices must rebalance portfolios to exclude Shankara Buildpro Limited
  • Market participants should note the exclusion in trading strategies and systems
  • Corporate action file (*.SDE) has been updated to reflect this change

Important Dates

  • January 22, 2026: Stock did not hit lower circuit (observation day 1)
  • January 23, 2026: Stock did not hit lower circuit (observation day 2) - Notice issued
  • January 28, 2026: Effective exclusion date from all listed indices (prior to market open)

Impact Assessment

Affected Indices (10 total):

  1. BSE SMALLCAP
  2. BSE ALLCAP
  3. BSE CONSUMER DISCRETIONARY
  4. BSE 1000
  5. BSE NEXT 500
  6. BSE NEXT 250
  7. MICROCAP BSE 1000
  8. MULTICAP EQUAL SIZE WEIGHTED (25%)
  9. BSE MIDSMALLCAP

Market Impact:

  • Passive funds and ETFs tracking these indices will need to sell holdings in Shankara Buildpro Limited
  • Potential selling pressure on the stock as index funds rebalance
  • Reduced visibility and liquidity for the stock post-exclusion
  • Impact on stock weightage and composition of all affected indices
  • Investors tracking these indices should be aware of the portfolio composition change

Impact Justification

Index exclusion affects passive funds tracking these indices and the stock's visibility, but follows established demerger process. Impact limited to one company across multiple indices.