Shakti Pumps (India) Limited, a leader in energy-efficient water solutions, has announced an investment of ₹3.8 crore in its wholly owned subsidiary, Shakti Energy Solutions Private Limited (SESPL). The investment was made by subscribing to 3.8 crore equity shares of face value ₹1 each.

Key Details of the Investment

1. Name of Subsidiary:
   Shakti Energy Solutions Pvt Ltd (SESPL) was incorporated on 6th September 2010 and specializes in manufacturing solar structures, polyhouses, and solar rooftop solutions.

2. Financial Performance:
   SESPL has demonstrated significant growth, with a turnover of ₹139.59 crore in FY24, up from ₹99.15 crore in FY23.

3. Industry and Purpose:
   The subsidiary operates in the renewable energy sector, focusing on manufacturing solar structures and related solutions. This investment aims to expand SESPL's operations, boosting its capacity to cater to the growing demand for sustainable energy solutions.

Strategic Importance

The investment aligns with Shakti Pumps’ vision of advancing India's renewable energy goals. SESPL’s expertise in solar structure manufacturing complements the parent company’s focus on sustainable and energy-efficient water solutions.

Key Highlights of the Investment:

• The transaction is not classified as a related party transaction as SESPL is a wholly owned subsidiary.
• The investment was completed on 3rd January 2025, with the company issuing equity shares as part of the transaction.
• No governmental or regulatory approvals were required for this investment.

Operational and Market Impact

• Strengthening Market Position:
  The infusion of funds is expected to enhance SESPL’s manufacturing capabilities and operational efficiency, further solidifying its position in the renewable energy market.

• Growth in Solar Solutions:
  By investing in SESPL, Shakti Pumps reinforces its commitment to contributing to India’s solar energy mission. The subsidiary’s focus on solar structures, polyhouses, and solar rooftops aligns with the country’s shift toward sustainable energy.

• Financial Synergy:
  The investment underscores Shakti Pumps’ strategy to leverage its subsidiary’s expertise in renewable energy solutions, ensuring long-term growth and profitability.

Statement from the Company

Ravi Patidar, Company Secretary of Shakti Pumps, commented:
"This investment is a strategic step toward expanding our footprint in the renewable energy sector. By strengthening our subsidiary’s capabilities, we aim to deliver innovative and sustainable solutions to meet the growing market demand for solar energy products."

Conclusion

The ₹3.8 crore investment in SESPL marks a significant milestone in Shakti Pumps' journey to diversify and grow in the renewable energy sector. With SESPL’s proven track record and expertise, this move is expected to yield substantial benefits for the company and its stakeholders.

Stay updated for more announcements from Shakti Pumps (India) Limited.

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