DIIs Buy 31,87,365 Shares in QIP Allotment of Shakti Pumps
In a significant development in the Indian equity market, Shakti Pumps (India) Limited has completed a Qualified Institutional Placement (QIP) issue, allotting 31,87,365 equity shares to institutional investors at a price of ₹918 each. The QIP, which opened on July 2, 2025, and closed on July 4, 2025, raised a total of ₹292.60 crore, marking one of the most successful QIP issues in recent times.
The issue was priced at a discount of 4.97% to the floor price, indicating a strong demand from institutional investors. The QIP saw significant participation from Domestic Institutional Investors (DIIs), which collectively purchased 31,87,365 shares, accounting for approximately 99.6% of the total shares allotted.
Among the notable DIIs that participated in the QIP issue were Pinebridge Global Funds, Bank of India Small Cap Fund, and LIC MF funds, which together accounted for a significant 51.07% of the total shares allotted. Pinebridge Global Funds, a global investment management firm, emerged as the largest participant, purchasing 34.18% of the shares allotted.
The QIP issue was led by Kotak Mahindra Capital Company, Axis Capital, and Equirus Capital, which acted as the book-running lead managers. The issue received an overwhelming response from institutional investors, with the order book being filled 2.5 times.
The successful completion of the QIP issue has boosted the company’s paid-up capital to ₹1,23,39,79,650, providing it with a stronger balance sheet to pursue its growth plans. The company, which is a leading manufacturer of solar pumps, plans to utilize the proceeds from the QIP issue to reduce its debt and fund its expansion plans.
Shakti Pumps has been a multibagger stock in recent years, with its share price rising by over 315% in the past five years. The company has been benefiting from the increasing adoption of solar power in India, driven by government initiatives and declining solar panel prices. Its order book stands at ₹1655 crore, providing it with a strong growth trajectory in the coming years.
The QIP issue is a significant milestone for Shakti Pumps, which has been focusing on expanding its operations and improving its financial performance. The issue has not only provided the company with a stronger balance sheet but also attracted institutional investors, who have a longer-term perspective and are likely to provide stability to the company’s share price.
The success of the QIP issue is also a testament to the growing appetite for Indian equities among institutional investors. The issue received a strong response from both foreign and domestic institutional investors, indicating a confidence in the Indian economy and the stock markets.
In conclusion, the QIP issue of Shakti Pumps (India) Limited is a significant development in the Indian equity market, marking a successful conclusion to the company’s efforts to raise capital from institutional investors. The issue has boosted the company’s paid-up capital, reduced its debt, and provided it with a stronger balance sheet to pursue its growth plans. As the company continues to benefit from the growing demand for solar power in India, its share price is likely to remain strong, providing multibagger returns to its shareholders.
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