Shakti Pumps Secures ₹292.6 Crore QIP, Bolstering Solar Pump Expansion Amidst Strong Financial Performance
Key Insights
Shakti Pumps successfully completed a Qualified Institutions Placement (QIP), raising approximately ₹292.60 crore through the issuance of 3,187,365 equity shares to institutional buyers.
Domestic Institutional Investors (DIIs), including Pinebridge Global Funds and Bank of India Small Cap Fund, acquired significant stakes, demonstrating strong investor confidence in the company.
The company recently secured a ₹114.58 crore order from MEDA under the PM-KUSUM scheme for 4,500 off-grid solar photovoltaic water pumping systems in Maharashtra.
Shakti Pumps reported robust financial growth in FY25, with revenue surging 84% to ₹2,516 crore and PAT increasing 187% to ₹408 crore, supported by a ₹1,655 crore order book.
Shakti Pumps (India) Limited has successfully concluded a Qualified Institutions Placement (QIP) of Equity Shares, raising approximately ₹292.60 crore. The Treasury Committee, on July 5, 2025, approved the allotment of 3,187,365 equity shares to eligible qualified institutional buyers at an issue price of ₹918 per share, representing a 4.97% discount to the floor price. This capital infusion significantly strengthens the company's financial position, enabling further expansion in the burgeoning solar pump market.
Following the allotment, the company's paid-up equity share capital has increased to ₹1,23,39,79,650, comprising 12,33,97,965 Equity Shares. The QIP saw substantial participation from Domestic Institutional Investors (DIIs), with PINEBRIDGE GLOBAL FUNDS-PINEBRIDGE INDIA EQUITY FUND acquiring 34.18% (1,089,325 shares) of the allotted shares. Other notable DIIs included BANK OF INDIA SMALL CAP FUND (8.89%), LIC MF INFRASTRUCTURE FUND (6.84%), LIC MF LARGE & MID CAP FUND (5.13%), and LIC MF MANUFACTURING FUND (5.13%), underscoring broad institutional confidence.
This capital raise follows a significant domestic order secured earlier from the Maharashtra Energy Department Agency (MEDA). The ₹114.58 crore project involves the supply and installation of 4,500 off-grid solar photovoltaic water pumping systems (SPWPS) across Maharashtra, under the MNRE Component-B of the PM-KUSUM scheme. The comprehensive work, including design, manufacturing, supply, and commissioning, is slated for completion within 90 days.
Shakti Pumps, established in 1982, is a prominent Indian manufacturer specializing in energy-efficient pumps, particularly solar options, for irrigation and domestic water supply. The company is recognized for its in-house manufacturing capabilities and commitment to sustainability, exporting products to over 100 countries. As of March 31, 2025, Shakti Pumps reported a robust unexecuted order book of ₹1,655 crore.
Financially, the company demonstrated strong performance in Q4FY25, with revenue from operations increasing by 9.2% year-over-year to ₹665 crore, and Profit After Tax (PAT) surging by 22.2% to ₹110 crore. For the full fiscal year FY25, revenue reached ₹2,516 crore, an 84% increase from ₹1,371 crore in FY24, while PAT significantly grew by 187% to ₹408 crore from ₹142 crore. The company maintains a market capitalization exceeding ₹11,000 crore, with a PE ratio of 29x, ROE of 43%, and ROCE of 55%. Promoter and FII stakes also increased in March 2025, reflecting growing investor interest.