Shakti Pumps (India) has released its monitoring agency reports regarding the utilization of funds raised through its Qualified Institutions Placements (QIPs) held in March 2024 and July 2025. As of March 31, 2026, there has been no deviation from the stated objects of the issues. The funds are being deployed toward capacity expansion and greenfield solar projects, with unutilized portions currently held as fixed deposits in reputable banks.
Utilization of March 2024 QIP Proceeds
For the QIP conducted in March 2024, which raised INR 2,000 million, the company has utilized INR 956.50 million as of the quarter ended March 31, 2026. The primary objective is to fund capacity expansion for pumps, motors, inverters, and variable frequency drives at its new facility in Pithampur, Madhya Pradesh. While there is a delay in the implementation schedule—with the revised timeline for completion now stretching into fiscal 2027—the company maintains that the allocated land is sufficient for immediate operations.
Progress on Solar Greenfield Project
The QIP concluded in July 2025 raised INR 2,926 million, aimed at part-financing a 2.2 GW solar DCR cell and solar PV module project through its subsidiary, Shakti Energy Solutions Limited. As of March 31, 2026, INR 1,821.21 million has been utilized for this project. The company is currently setting up a 0.5 GW module plant adjacent to its existing facilities. The project remains ongoing with a revised completion target for fiscal 2027.
Fund Deployment Strategy
The company continues to manage its liquidity prudently. The unutilized portions from both capital raises are currently parked in various fixed deposits with Federal Bank, ICICI Bank, and IndusInd Bank. These investments are yielding returns ranging from approximately 2.75% to 7.25%, ensuring that the idle funds remain secure and productive until they are required for their designated capital expenditure phases.
Source: BSE
