Shakti Pumps raises ₹200 crore via QIP, eyes expansion in solar pumps industry

Shakti Pumps (India) Ltd has concluded a Qualified Institutional Placement (QIP) of ₹200 crore. The QIP was fully subscribed by mutual funds such as LIC Mutual Fund and SBI Mutual Fund.

A substantial portion of the funds raised will be used to augment the capacity of pumps/motors, inverters/VFDs, and structures, aligning with opportunities in the solar pumps industry, driven by the PM KUSUM Scheme, under which over 14 lakh solar pumps will be installed under Component B (Off Grid Pumps) and 35 lakh solar pumps under Component C (On Grid Pumps).

Dinesh Patidar, Chairman, Shakti Pumps (India), said, “SPIL has been receiving new orders, which have added to our order book, which stood at ₹2,250 crores as on December 31, 2023, to be executed in the next two years. Our order book includes repeat orders from some states, which reaffirms our product quality, and the trust farmers have in our products. With this fund raise, our balance sheet is well placed and will give us the opportunity to improve our market presence and consistently deliver strong results in the times ahead.”

The shares were up by 0.11 per cent at ₹1,40 at 1 pm on the BSE.