Shakti Pumps (India) Limited secures Rs 200cr in QIP issue
Shakti Pumps (India) Limited (SPIL), a frontrunner in the manufacturing of solar pumps and motors in India, has successfully concluded a Qualified Institutional Placement (QIP) raising Rs. 200 Crores. This financial milestone has garnered substantial attention, being fully subscribed by esteemed domestic institutional investors including LIC Mutual Fund and SBI Mutual Fund. This endorsement not only underscores the potential of the solar pump industry but also reaffirms Shakti Pumps’ commanding position within the sector.
The solar pump industry, significantly bolstered by the Government’s PM KUSUM Scheme, presents vast opportunities with an estimated installation of over 14 lakh off-grid and 35 lakh on-grid solar pumps. A significant portion of the proceeds from the QIP will be dedicated to expanding the production capabilities of pumps/motors, inverters/variable frequency drives (VFDs), and structures, positioning Shakti Pumps to capitalize on the burgeoning demand.
Dinesh Patidar, Chairman of Shakti Pumps (India) Limited, expressed his enthusiasm over the QIP’s successful closure and the confidence demonstrated by the investors. “We are delighted with the successful closure of this institutional placement and the confidence these marquee investors have placed on us, which further strengthens our commitment to reaching new horizons,” said Mr. Patidar.
SPIL’s leadership in the industry is further evidenced by its impressive order book, which stood at Rs. 2250 Crores as of December 31, 2023, with expectations to execute these orders within the next two years. The company has also secured repeat orders from some states, highlighting the quality of its products and the trust placed in them by farmers. With the recent fundraise, Shakti Pumps is well-prepared to seize future growth opportunities, enhancing its market presence and delivering robust results.
The strategic infusion of funds through the QIP underscores the investors’ belief in the potential of the solar pumps sector and Shakti Pumps’ pivotal role within it. As the industry continues to grow, supported by government initiatives like the PM KUSUM Scheme, Shakti Pumps is poised to make significant strides in meeting the increasing demand for sustainable and efficient agricultural solutions.