Shakti Pumps (India) Limited has submitted its Monitoring Agency Report for the quarter ended June 30, 2026, concerning its Qualified Institutions Placements (QIPs). The report, issued by India Ratings & Research Private Limited, confirms no deviation from the stated objects of the fund utilization. Funds were raised through QIPs held on March 22, 2024 and July 5, 2025.
Monitoring Agency Report for Q1 FY2026
Shakti Pumps (India) Limited has officially submitted its Monitoring Agency Report for the financial quarter ending June 30, 2026. This report details the utilization of funds raised through Qualified Institutions Placements (QIPs). The QIPs were conducted on March 22, 2024 and July 5, 2025.
Key Findings from the Report
The report, prepared by India Ratings & Research Private Limited, acting as the Monitoring Agency, indicates that the utilization of the QIP proceeds has been in line with the objects disclosed. Specifically, there has been no deviation from the objects of the issue. The report is based on the management’s undertaking and other relevant documents provided by the company.
Utilization of Funds
The total amount raised through the QIPs was INR 2,000.00 Mn for the first QIP and INR 2,926.00 Mn for the second QIP. For the quarter ended June 30, 2026, the company utilized INR 1,086.49 Mn out of the total INR 2,000.00 Mn from the first QIP. The primary object of the first QIP was part-funding capacity expansion for manufacturing pumps and motors, inverters, and variable frequency drives, amounting to INR 1,500.00 Mn. Another portion, INR 470.00 Mn, was allocated for General Corporate Purposes. QIP-related issue expenses amounted to INR 30.00 Mn.
For the second QIP, the total utilized amount for the quarter was INR 2,106.37 Mn out of INR 2,926.00 Mn. The major allocation, INR 2,250.00 Mn, is for investment in its subsidiary, Shakti Energy Solutions Limited, for a greenfield 2.2 GW solar DCR cell and Solar PV Module Project. General Corporate Purposes accounted for INR 632.00 Mn, and QIP-related issue expenses were INR 44.00 Mn.
Status of Project Implementation
The report notes that the expansion of inverters, variable frequency drives, and structures has been undertaken at the existing facility rather than a new one, due to delays in land acquisition. The company has acquired 23.35 acres of land out of the planned 45.66 acres for the project and is in the process of acquiring the remainder. The Board of Directors acknowledged the delay in land acquisition and confirmed that the expansion at the existing facility ensures timely augmentation of production capacity and meets market demand.
The company also confirmed that, as per management undertaking, all requisite approvals needed for the current stage of projects have been secured.
Deployment of Unutilized Proceeds
Unutilized funds from the first QIP have been deployed in fixed deposits with Federal Bank, with maturity dates in April 2027 and an annualized return of 7.10%. There are also funds deployed with ICICI Bank and Indusind Bank, with varying maturity dates and return rates. The total unutilized amount from the first QIP stood at INR 913.51 Mn.
For the second QIP, unutilized funds, totaling INR 817.53 Mn, are primarily invested in fixed deposits with Federal Bank, maturing in August 2026 with a 7.10% annualized return, and also include balances with ICICI Bank.
Source: BSE
