The shares of this world’s largest pump and motor manufacturer fell by 4.5% to ₹1,307.50 per share on Wednesday, despite the company board’s approval to raise funds via QIP up to ₹200 crores.
At 1:15 p.m., Shakti Pumps (India) Ltd. shares were trading at ₹1,315 per share, down 4.27 % on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹2,417 crore.
According to the filing, during the company’s board meeting on March 19, 2024, the board approved raising funds of up to ₹200 crores through a Qualified Institutions Placement (QIP) from qualified institutional buyers, with a floor price set at ₹1,272.09.
Shakti Pumps saw a significant upswing in its yearly earnings, with a 58% rise in revenue, reaching ₹496 crore in Q3FY24 from ₹314 crore in Q3FY23. Simultaneously, its net profit skyrocketed by 309%, surging from ₹11 crore to ₹45 crore over the same period.
Moreover, Shakti Pumps (India) Ltd. witnessed a 54% increase in its stock value over the past six months and a 224% rise over the last year.
The core operations of Shakti Pumps (India) Ltd. revolve around manufacturing various types of pumps and motors, alongside providing sophisticated water pumping solutions catering to diverse sectors such as irrigation, horticulture, domestic water supply, as well as commercial and industrial applications. All products are marketed under the brand name “Shakti.”
The company holds a dominant market position, commanding a 30% share in the domestic solar pump market under the PM KUSUM scheme. With a manufacturing capacity of 500,000 units of pumps situated in Pithampur (MP), bolstered by advanced in-house research and development facilities and robust backend support, Shakti Pumps is well-positioned in the industry.
The company primarily exports its products to the Middle East, accounting for 44%, followed by 30% to the United States, 15% to Africa, 7% to Asia, and the remaining 4% to other parts of the world.
The company has a global presence, operating in over 118 countries spanning across the Middle East, USA, Africa, Asia, and Europe. Additionally, it maintains dedicated subsidiaries in the UAE, USA, Australia, and Bangladesh, with an additional subsidiary in China facilitating imports from that region. In the fiscal year 2023, exports constituted approximately 24% of the company’s total revenue. Moreover, it holds accreditation as a “Star Export House” by the government of India.
Written by Omkar Chitnis
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