Shakti Pumps QIP Fund Utilisation Report Q4 FY26
Shakti Pumps (India) Limited filed its Monitoring Agency Report for Q4 FY26, confirming no deviation in the utilisation of proceeds from two QIPs conducted in March 2024 and July 2025. The March 2024 QIP proceeds, totaling INR 2,000.00 Mn, saw cumulative utilisation of INR 956.50 Mn, primarily for capacity expansion in Pithampur, while the July 2025 QIP proceeds of INR 2,926.00 Mn had cumulative utilisation of INR 1,821.21 Mn for a solar project via subsidiary SESL. Unutilised funds are parked in fixed deposits, and the monitoring agency noted implementation delays and minor changes in project execution locations.
*this image is generated using AI for illustrative purposes only.
Shakti Pumps (India) Limited has filed its Monitoring Agency Report for the quarter ended March 31, 2026, in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report, dated May 7, 2026, was prepared by India Ratings & Research Private Limited, the monitoring agency appointed by the company, and covers the utilisation of proceeds raised through two separate Qualified Institutions Placements (QIPs) — conducted on March 22, 2024, and July 5, 2025, respectively.
QIP Issue Details
The two QIPs differ in size, pricing, and stated objects. The March 2024 QIP was directed towards capacity expansion at a new facility in Pithampur, Madhya Pradesh, while the July 2025 QIP was aimed at funding a greenfield solar manufacturing project through the company's subsidiary. The key parameters of both issues are summarised below.
| Parameter: | QIP 1 (March 2024) | QIP 2 (July 2025) |
|---|---|---|
| Issue Period: | March 19, 2024 to March 22, 2024 | July 2, 2025 to July 4, 2025 |
| Securities Issued: | 16,54,944 Equity Shares of FV ₹ 10 each @ ₹ 1,208.50 per share | 31,87,365 Equity Shares of FV ₹ 10 each @ ₹ 918.00 per share |
| Issue Size: | INR 2,000.00 Mn | INR 2,926.00 Mn |
| Primary Object: | Capacity expansion at new facility in Pithampur, MP | Investment in subsidiary SESL for 2.2 GW solar DCR cell and Solar PV Module Project |
No Deviation from Objects Reported
India Ratings & Research confirmed that, based on management undertakings and supporting documents, no deviation from the stated objects of either QIP has been observed for the quarter ended March 31, 2026. The monitoring agency noted that no government or statutory approvals were required for funds utilised up to the quarter ended March 31, 2026, as per management undertaking, and that necessary approvals will be obtained in future wherever required.
However, the monitoring agency noted a change in implementation for the July 2025 QIP: out of the proposed 2.2 GW capacity, the company is setting up a 0.5 GW module plant adjacent to its existing facility, rather than at the new land as disclosed in the placement document. The Board of Directors confirmed that utilisation remains in line with the offer document.
Fund Utilisation — QIP 1 (March 2024): INR 2,000.00 Mn
As of March 31, 2026, cumulative utilisation under the March 2024 QIP stood at INR 956.50 Mn, with INR 114.84 Mn deployed during the quarter. The remaining INR 1,043.50 Mn is yet to be utilised. The following table details the progress against each object.
| Item Head: | Proposed (INR Mn) | Utilised at Start of Quarter (INR Mn) | Utilised During Quarter (INR Mn) | Cumulative Utilised (INR Mn) | Unutilised (INR Mn) |
|---|---|---|---|---|---|
| Capacity Expansion — Pithampur Facility: | 1,500.00 | 342.50 | 114.44 | 456.94 | 1,043.06 |
| General Corporate Purposes: | 470.00 | 469.95 | — | 469.95 | 0.05 |
| QIP Related Issue Expenses: | 30.00 | 29.20 | 0.41 | 29.60 | 0.40 |
| Total: | 2,000.00 | 841.65 | 114.84 | 956.50 | 1,043.50 |
Of the INR 114.44 Mn deployed towards capacity expansion during the quarter, INR 41.39 Mn was paid to related party Vintex Tools and Machineries Private Limited (Promoter Group). The monitoring agency noted a delay in deployment and implementation of the capacity expansion object. The company's revised timeline for the Pithampur project is as follows:
- Land Acquisition: August 10, 2025 (out of 45.66 acres, 23.35 acres acquired; balance under process)
- Site Development & Civil Construction: April 30, 2026
- Commissioning of Plant: July 31, 2026
- Trial Run and Production: August 31, 2026
Additionally, the monitoring agency noted that expansion with respect to Inverters, Variable Frequency Drives & Structures has been undertaken at the existing facility rather than at the new Pithampur facility. The Board of Directors approved, vide resolution dated January 24, 2025, investment of part of the issue proceeds in wholly owned subsidiary Shakti Energy Solutions Private Limited for capital expenditure pertaining to structures capacity expansion — a detail not mentioned in the original placement document.
Unutilised proceeds from QIP 1 totalling INR 1,212.12 Mn (including reinvested interest of INR 168.82 Mn) are deployed across fixed deposits with Federal Bank and ICICI Bank, at annualised returns ranging from 2.75% to 7.25%.
Fund Utilisation — QIP 2 (July 2025): INR 2,926.00 Mn
For the July 2025 QIP, cumulative utilisation as of March 31, 2026, stood at INR 1,821.21 Mn, with INR 973.11 Mn deployed during the quarter. The total unutilised amount is INR 1,104.79 Mn. The progress against each object is detailed below.
| Item Head: | Proposed (INR Mn) | Utilised at Start of Quarter (INR Mn) | Utilised During Quarter (INR Mn) | Cumulative Utilised (INR Mn) | Unutilised (INR Mn) |
|---|---|---|---|---|---|
| Investment in SESL — 2.2 GW Solar Project: | 2,250.00 | 174.85 | 972.79 | 1,147.64 | 1,102.36 |
| General Corporate Purposes: | 632.00 | 629.96 | — | 629.96 | 2.04 |
| QIP Related Issue Expenses: | 44.00 | 43.29 | 0.32 | 43.61 | 0.39 |
| Total: | 2,926.00 | 848.10 | 973.11 | 1,821.21 | 1,104.79 |
Of the INR 972.79 Mn deployed towards the solar project during the quarter, INR 16.81 Mn was paid to related party Shakti Construction & Development Pvt Ltd. The company has revised the completion timeline for the solar project to fiscal 2027, from the originally stated fiscal 2026. Unutilised proceeds from QIP 2 totalling INR 1,167.81 Mn (including reinvested interest of INR 63.02 Mn) are held in fixed deposits with Federal Bank, ICICI Bank, and IndusInd Bank, at annualised returns ranging from 2.75% to 7.05%.
Compliance and Monitoring Agency Declaration
India Ratings & Research, acting solely in its capacity as monitoring agency, confirmed that the report provides an objective view of issue proceeds utilisation based on information provided by the issuer. The agency clarified that it does not perform an audit and undertakes no independent verification of information, certifications, or statements received. The report was prepared in line with the format prescribed under Schedule XI of the SEBI (ICDR) Regulations, 2018. No conflict of interest was reported by the monitoring agency in its relationship with the issuer.
Historical Stock Returns for Shakti Pumps
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -7.62% | -2.53% | +8.43% | -31.08% | -38.20% | +513.62% |
Given the significant delay in deploying QIP 1 funds with over 52% still unutilised two years after the March 2024 raise, how might continued slow capital deployment impact Shakti Pumps' capacity expansion targets and competitive positioning in the pump manufacturing sector?
With the solar project timeline pushed to fiscal 2027 and the implementation location changed from the original placement document, what regulatory or investor scrutiny could Shakti Pumps face from SEBI regarding material deviations in QIP fund utilisation?
How could the partial land acquisition at Pithampur (only 23.35 of 45.66 acres secured) affect the commissioning timeline of July 2026 and the company's ability to scale production as planned?
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