Shakti Pumps Raises Rs 292.60 Crore for Solar Manufacturing Expansion

Shakti Pumps (India) Ltd raised Rs 292.60 crore via Qualified Institutional Placement to fund a new solar PV modules plant in Madhya Pradesh. The funds, gathered by issuing shares at Rs 918 each, will aid in establishing a 2.20 GW production facility, enhancing the company's backward integration.

Shakti Pumps (India) Ltd announced on Monday its successful capital raise of Rs 292.60 crore through Qualified Institutional Placement. The initiative involved issuing 31.87 lakh shares at a price of Rs 918 per share, a slight 4.97 percent markdown from the Securities and Exchange Board of India (SEBI) determined floor price.

The funds will facilitate the establishment of a high-efficiency solar domestic content requirement (DCR) cell and solar PV modules manufacturing plant in Pithampur, Madhya Pradesh. This venture is being carried out through Shakti Energy Solutions, a subsidiary of Shakti Pumps, and is expected to have a production capacity of 2.20 GW.

Chairman Dinesh Patidar remarked that this funding highlights investor confidence in their business model, aimed at enhancing growth initiatives. Currently, the Madhya Pradesh-based company produces solar pumps and other energy-efficient equipment, with an annual production capacity of 500,000 pumps spread across two manufacturing facilities.

(With inputs from agencies.)