Shakti Pumps Raises ₹2.92 Billion Through Qualified Institutional Placement

The proceeds will be used to set up a solar cell and module manufacturing facility in Madhya Pradesh

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Solar water pump and motor manufacturer Shakti Pumps has raised ₹2.92 billion (~$34.07 million) through a qualified institutions placement (QIP) of shares.

The QIP issue was priced at ₹918 (~$11) per share, a 4.97% discount to the Securities and Exchange Board of India floor price of ₹965.96 (~$11.3).

The proceeds from the QIP will be utilized to establish a solar cell and module manufacturing facility in Pithampur, Madhya Pradesh, through the company’s subsidiary, Shakti Energy Solutions. This integrated facility will have a production capacity of 2.2 GW and produce modules compliant with the domestic content requirement.

The company stated in a bourse filing that the in-house manufacturing of solar cells will enhance backward integration and allow greater control over the entire value chain.

The fundraise and expansion follow a series of major project wins for the company.

In November last year, Shakti Pumps received a contract from Haryana Renewable Energy Development Agency (HAREDA) to supply, install, and commission 3,174 solar water pumping systems under Component B of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) Program.

Shakti Pumps also received a letter of intent from the Uttar Pradesh Department of Agriculture to supply, install, and commission 12,537 pumps under Component B of the PM KUSUM Program.

In March 2024, HAREDA awarded Shakti Pumps an order to supply, install, and commission 4,573 solar water pumping systems.

Shakti Pumps secured a letter of empanelment from the Maharashtra State Electricity Distribution Company to provide 50,000 off-grid solar photovoltaic water pumping systems across Maharashtra.

Solar companies secured $4.8 billion in corporate funding through 39 deals in the first quarter (Q1) of 2025, a 41% year-over-year decrease from $8.2 billion raised in 42 deals. However, funding increased 20% quarter-over-quarter compared to $4 billion raised in 40 deals in Q4 2024. These figures were revealed in Mercom Capital Group’s newly released Q1 2025 Solar Funding and M&A Report.

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