The board of Shakti Pumps has approved a fund raise of up to Rs 400 crore through a qualified institutional placement of shares, a company filing said on January 7, sending the stock price higher by more than 2% in mid-day trade.
The board will announce the terms and conditions of the proposed fund raise at a later date, aiming to fund its expansion plans.
Shakti Pumps has an orderbook of Rs 1,800 crore as of September quarter, which it hopes to execute by the end of 2025. During H1FY25, Shakti Pumps recorded a revenue of Rs 1,202.2 crore, which is 3.5x higher than H1FY24. EBITDA too witnessed a significant rise to Rs 284.6 crore, resulting in an EBITDA margin of 23.7%, versus an EBITDA margin of 8.7% in H1FY24.
The management had in the past said that it can aim at Rs 2,500 crore orderbook at the current capacity and has planned further expansion, for which equity from SBI MF and LIC MF has been raised.
Shakti Pumps is also betting on the growth in its solar business pilot, which can also help bring Discoms back from losses, as more agricultural pumps get connected with solar electricity. Shakti Pumps said in its September quarter earnings call that it sees the entire 4.5 crore pan-India agri pump connections that is with electricity grids as a potential market for its solar pumps. The PM-KUSUM-C scheme, which is aimed at solarizing existing grid-connected agriculture pumps, promises to double the pump capacity by installing solar PV.
The stock has been a multibagger in the last one year, rising by more than seven-folds.
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