DIIs bought 27,17,951 shares & FIIs bought 17,19,613 shares: Solar pumps manufacturer with Rs 1,655 crore order book, successfully closes QIP issue, raises Rs 292.60 crore!

Shakti Pumps (India) Ltd announced the successful closure of its Qualified Institutions Placement (QIP) issue on July 7, 2025, raising Rs 292.60 crores from institutional investors. The QIP saw an overwhelming response, reflecting strong confidence in the company's future growth. The funds are earmarked for establishing a greenfield manufacturing plant in Pithampur, Madhya Pradesh, through its subsidiary, Shakti Energy Solutions Limited. This facility will produce high-efficiency solar DCR cells and solar PV modules with a capacity of 2.20 GW, enhancing backward integration and control over the value chain, thereby strengthening the company's financial position and enabling strategic objectives. The QIP was priced at Rs 918.00 per share, a 4.97 per cent discount to the SEBI floor price of Rs 965.96.

The Treasury Committee of Shakti Pumps (India) Limited met on July 5, 2025, to approve the issuance and allotment of 31,87,365 Equity Shares, each with a face value of Rs 10, to eligible qualified institutional buyers at an issue price of Rs 918 per share (including a premium of Rs 908). The QIP, which opened on July 2, 2025, and closed on July 4, 2025, resulted in an aggregate amount of approximately Rs 292.60 crore. Following this allotment, the company's paid-up equity share capital increased from Rs 1,20,21,06,000 (12,02,10,600 Equity Shares) to Rs 1,23,39,79,650 (12,33,97,965 Equity Shares). Notable Domestic Institutional Investors (DIIs) participating in the QIP included PINEBRIDGE GLOBAL FUNDS-PINEBRIDGE INDIA EQUITY FUND (34.18 per cent), BANK OF INDIA SMALL CAP FUND (8.89 per cent), and various LIC Mutual Fund schemes.

About the Company

Shakti Pumps, a leading Indian manufacturer of pumps and motors for various applications like irrigation and domestic water supply, has been at the forefront of innovation with its well-regarded "Shakti" brand. Founded in 1982, they specialise in energy-efficient pumps, including solar options and manufacture a wide range of components in-house for complete solar pump solutions. Committed to sustainability and transforming agriculture, Shakti Pumps exports its products to over 100 countries and is India's first 5-star-rated pump manufacturer.

The company has a market cap of over Rs 11,000 crore and as of March 31, 2025, the company has an unexecuted order book of Rs 1,655 crore. In Q4FY25, the company witnessed strong growth across key financial metrics. Revenue from Operations surged by 9.2 per cent YoY to Rs 665 crore, driven by robust order execution. Consequently, PAT witnessed a remarkable 22.2 per cent YoY growth to Rs 110 crore. This strong performance was further reflected in the FY25 results. Revenue jumped to Rs 2,516 crore, a substantial increase from Rs 1,371 crore in the same period last year, an increase of 84 per cent. Similarly, PAT soared to Rs 408 crore, a skyrocket of 187 per cent from Rs 142 crore in FY24.

In June 2025, DIIs bought 27,17,951 shares & FIIs bought 17,19,613 shares and increased their stake to 6.42 per cent and 5.72 per cent, respectively, compared to March 2025. The shares of the company have a PE of 27x, an ROE of 43 per cent and an ROCE of 55 per cent. The stock gave multibagger returns of 830 per cent in 2 years and a whopping 2,925 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.