Shakti Pumps (India) Limited has submitted the Monitoring Agency Report for the quarter ended December 31, 2025, concerning the utilization of funds raised via Qualified Institutions Placements (QIPs) in March 2024 and July 2025. The report confirms no deviation from the stated objects. Total QIP funds raised were INR 2,000.00 Mn, with INR 1,158.35 Mn utilized as of the reporting date. Unutilized funds are primarily parked in fixed deposits.
QIP Monitoring Report Submission
Shakti Pumps (India) Limited officially submitted the Monitoring Agency Report for the quarter ending December 31, 2025. This report details the utilization of proceeds from the Qualified Institutions Placements (QIPs) conducted on March 22, 2024, and July 5, 2025. The monitoring was conducted by India Ratings & Research Private Limited.
Fund Utilization Status
The total QIP size was INR 2,000.00 Mn. For the quarter ending December 31, 2025, the total utilized amount reached INR 848.10 Mn, leaving a total unutilized balance of INR 2,077.90 Mn (Note: The difference between utilized and total raised funds appears to be due to realized interest reinvested, as noted in the document).
Progress Against Stated Objects (Cost of Object(s))
- Project Funding (Capacity Expansion): Original proposed cost was INR 1,500.00 Mn. Utilization reported up to the quarter end was INR 1,157.50 Mn. The key object involves part-funding capacity expansion for Pumps, Motors, Inverters, and Variable Frequency Drives.
- General Corporate Purposes (GCP): Original proposed allocation was INR 470.00 Mn. Utilization reported was INR 469.95 Mn, indicating near-complete utilization against this head.
- QIP Related Issue Expenses: Total allocated was INR 30.00 Mn, with INR 0.80 Mn utilized by the end of the quarter.
Implementation Timelines and Deviations
The Monitoring Agency confirmed No Deviation from the objects. However, the implementation schedule shows some delays relative to the original Offer Document:
- Land Acquisition: Original date was June 30, 2024, with the latest revised estimate being August 10, 2025. The status is reported as Ongoing, with 23.35 acres acquired out of 45.66 acres.
- Site Development & Civil Construction: Original date was June 30, 2025, with the latest estimate being April 30, 2026.
- Commissioning of Plant: Original date was December 31, 2025, with the latest estimate being July 31, 2026.
Deployment of Unutilized Proceeds
The significant unutilized balance of approximately INR 2,112.49 Mn was deployed in various short-term instruments, predominantly Fixed Deposits (FDs) with Federal Bank, ICICI Bank, and IndusInd Bank, maturing between January 2026 and May 2026. These instruments offered returns generally ranging from 5.25% to 7.25% annualized.
Furthermore, the unutilized funds include balances held in the accounts of the Company and its subsidiary, Shakti Energy Solutions Pvt Ltd, amounting to approximately INR 40.41 Mn.
Source: BSE
