Shakti Pumps launches QIP to raise Rs 200 crore, shares fall

Shares of Shakti Pumps fell over 3 percent on March 20, a day after the water pump company opened qualified institutional placement (QIP) to raise up to Rs 200 crore. The floor price of the QIP issue has been fixed at Rs 1,272.09 per share, a 5 percent discount from the previous day’s closing price.

At 9:26 am, the stock was trading 1.6 percent down at Rs 1,350.50 on the National Stock Exchange (NSE).

Qualified Institutional Placement (QIP) is a fundraising mechanism used by listed companies in India to raise capital by issuing securities to qualified institutional buyers (QIBs) such as mutual funds, insurance companies, banks, and foreign institutional investors (FIIs).

QIPs allow companies to issue equity shares, fully convertible debentures, or any securities other than warrants or convertible debt instruments, to raise funds without going through a lengthy process like a public offering.

Follow our market blog to catch all the live action

In the previous session, Shakti Pumps shares closed 1.59 percent higher at Rs 1,365.00 on NSE. The stock has delivered multibagger returns of over 230 percent in the last one year, compared to Nifty’s returns of 28 percent during this period.

Earlier this month, Shakti Pumps received a Rs 93-crore work order from the Maharashtra Energy Department Agency (MEDA) for 3,500 solar photovoltaic water pumping system (SPWPS) at various locations across the state under Component‐B of PM‐KUSUM scheme.

The order includes design, manufacture, supply, transport, installation, testing and commissioning and to be completed in 120 days from the date of issue of work order.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.