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Shakti Pumps secures ₹293 crore contract under PM-KUSUM III scheme, shares surge

EditorRachael Rajan
Published 15/09/2023, 18:42
© Reuters.

Shakti Pumps (India) Limited's shares experienced a significant surge on Friday, jumping nearly 15% to reach the day's high at Rs 902.65. This increase followed the announcement that the company had received a Letter of Award (LOA) worth Rs 293 Crore (1 crore = 10 million) under the PM-KUSUM III scheme.

The LOA was issued by the Department of Agriculture, Uttar Pradesh for the supply of 10,000 pumps. The total value of the work order, inclusive of GST, is around Rs 293 Crores, as stated in the company's regulatory filing to the stock exchange. The contract, awarded by a domestic entity, encompasses the supply, installation, and commissioning of solar water pumping systems. The order must be executed within a 90-day period from the date of issuance.

The company confirmed that neither its promoter nor promoter group or group companies have any interest in the entity awarding the order. Furthermore, the contract does not fall within related party transactions.

Shakti Pumps (India) Limited was founded in 1982 and later converted into a public limited company in 1995. Located in Pithampur, Madhya Pradesh, it operates two manufacturing facilities with a combined capacity of 500,000 pumps per year.

The shares of Shakti Pumps closed 9.30% higher on Friday at Rs 860.55 apiece on the BSE with an intraday high of Rs 902.65 and an intraday low of Rs 801.90. The market cap of the stock is Rs 1,581.70 Crore. Over the past week, the stock gained 4.73%, and over the past month, it increased by 25.50%. The company has delivered strong returns over the past few years, with a 359.82% positive return in the past three years and a 104.55% positive return in the past five years.

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