Shakti Pumps Seeks ₹200 Crore via QIP, Shares Dips on Floor Price Announcement

20 Mar 2024 , 11:40 AM

Shakti Pumps shares decline by over 3% following the launch of a Qualified Institutional Placement (QIP) to raise up to ₹200 Crore.

The floor price for the QIP issue is set at ₹1,272.09 per share, offering a 5% discount from the previous day’s closing price. At the time of writing, the stock is trading 4.35% lower at ₹1,314.50 on the National Stock Exchange (NSE).

QIP is a fundraising method used by listed companies to raise capital from qualified institutional buyers (QIBs) like mutual funds, insurance companies, banks, and foreign institutional investors (FIIs).

Shakti Pumps’ shares closed 1.59% higher at ₹1,365.00 in the previous session, delivering significant returns of over 230% in the last year compared to Nifty’s 28%.

The company recently secured a ₹93-Crore work order from the Maharashtra Energy Department Agency (MEDA) for 3,500 solar photovoltaic water pumping systems (SPWPS) under the PM-KUSUM scheme’s Component‐B.

The order encompasses design, manufacture, supply, transport, installation, testing, and commissioning, with completion expected within 120 days from the date of the work order issuance.

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