Multibagger stock in focus: Shakti Pumps India QIP kicks off, floor price at 2% premium

Shares of multibagger Shakti Pumps India Ltd are in focus on Thursday morning, as the company kicked off its Rs 400 crore qualified institutional placement (QIP). The treasury committee of the company, in its meeting held on July 2, approved the preliminary placement document and the draft of application form, in connection with the issue. The floor price of the issue is set at Rs 965.96, which was at 2.32 per cent premium over Thursday's closing price of Rs 944.05 on BSE.

To recall, the company had on January 7 this year announced raising of funds for an aggregate amount of up to and not exceeding Rs 400 crore, in one or more tranches and/or one or more issuances, by way of qualified institutions placement(s) in accordance with the applicable provisions of the Companies Act, 2013.
 
On Wednesday, the committee authorised the opening of the issue of such number of equity shares to eligible qualified institutional buyers through a qualified institutions placement under Chapter VI of the Securities and Exchange Board of India (issue of Capital and Disclosure Requirements) Regulations, 2018, and Section 42 and Section 62 of the Companies Act.

"We further wish to inform you that the 'Relevant Date' for the purpose of the issue, in terms of the SEBI ICDR Regulations is July 02, and accordingly the floor price in respect of the Issue, based on the pricing formula as prescribed under RegulationL76(7) of the SEBI ICDR Regulations is Rs 965.96 per Equity Share. Pursuant to Regulation 176 (1), at its discretion, offer a discount of not more than 5 per cent on the floor price so calculated for the issue," Shakti Pumps said in a stock exchange filing.

Shakti Pumps caters to a wide range of applications across agriculture, irrigation, industrial processes, community water supply, wastewater management, firefighting systems, and pressure boosting in high-rise infrastructure. IT also offers solar-powered pumping solutions, holding a dominant 40 per cent market share in the PM-KUSUM scheme, a flagship initiative by the Government of India to promote solar energy for agricultural irrigation.
Despite a 20 per cent drop in its share price over the past six months, Shakti Pumps India shares are up 850 per cent in the past two years, 1,038 per cent in three and 3,267 per cent in the past five years.