Shakti Pumps (India) Limited, a leading manufacturer of energy-efficient pumps, has invested ₹5,00,00,000/- (Rupees Five Crores Only) in its wholly-owned subsidiary, Shakti EV Mobility Private Limited, by subscribing to 50,00,000 (Fifty Lacs) Equity Shares of face value of ₹10/- each. This investment increases the consolidated investment to ₹50,00,00,000/- (Rupees Fifty Crores Only) after subscribing to the additional equity shares.

Details of the Investment:

As per the intimation filed with the National Stock Exchange of India Ltd. (NSE) and BSE Limited (BSE) under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the investment aims to strengthen and expand the business operations of Shakti EV Mobility Private Limited.

Shakti EV Mobility Private Limited was incorporated on December 16, 2021, and has a total asset size of ₹3723.92 Lacs as of March 31, 2024. The company is engaged in the manufacturing of electric vehicle (EV) motors and chargers for two-wheelers, three-wheelers, four-wheelers, and special-purpose electric vehicles. The turnover for the financial year ending March 31, 2024, stood at ₹430.09 Lacs.

Purpose and Impact of the Investment:

The primary objective of this investment is to expand and strengthen the business operations of Shakti EV Mobility Private Limited. By increasing its stake in the subsidiary, Shakti Pumps aims to diversify its portfolio and position itself as a key player in the growing electric vehicle sector in India.

The investment aligns with the company's long-term growth strategy of exploring new opportunities in the electric vehicle segment, which is witnessing rapid growth due to the increasing adoption of electric mobility in India. Shakti EV Mobility focuses on the manufacturing of motors and chargers for various electric vehicles and plays a crucial role in supporting the country’s electric mobility vision.

Disclosure under Regulation 30:

In accordance with Regulation 30 (6) read with Schedule III Part A Para A(1) of the SEBI Listing Regulations and SEBI Circular No. SEBI/HO/CFD/CFD-1/P/CIR/2023/123 dated July 13, 2023, the company provided the following details:

• Name of the Target Entity:
  Shakti EV Mobility Private Limited, a wholly-owned subsidiary of Shakti Pumps.

• Nature of Transaction:
  The investment involves subscribing to 50,00,000 equity shares of ₹10/- each amounting to ₹5 crores.

• Related Party Transaction:
  Since Shakti EV Mobility Private Limited is a wholly-owned subsidiary, this transaction does not fall under related party transactions, and the concept of arm’s length transaction is not applicable.

• Industry Classification:
  Shakti EV Mobility Private Limited operates in the electric vehicle sector, focusing on manufacturing electric vehicle motors and chargers.

• Regulatory Approvals:
  No governmental or regulatory approvals were required for the investment.

• Consideration and Mode of Payment:
  The investment is being made by subscribing to equity shares issued by Shakti EV Mobility Private Limited.

• Cost of Acquisition and Percentage of Control:
  The investment amount is ₹5 crores, and the company will issue equity shares as per the agreed terms. Since it is a wholly-owned subsidiary, Shakti Pumps retains complete control over the entity.

• Timeline for Completion:
  The acquisition process is expected to be completed on the same day as the disclosure.

Background and Business Overview:

Shakti EV Mobility Private Limited is engaged in the manufacturing of motors and controllers for electric vehicles, catering to various types of vehicles such as:

• Two-wheelers

• Three-wheelers

• Four-wheelers

• Special-purpose electric vehicles

Additionally, the company manufactures chargers for electric vehicles, ensuring seamless integration of electric mobility solutions.

Financial Performance and Growth:

Shakti EV Mobility Private Limited reported a turnover of ₹430.09 Lacs for the financial year ending March 31, 2024, reflecting the company's steady growth in the EV sector. With the increasing adoption of electric vehicles in India and the government’s push towards sustainable mobility, Shakti EV Mobility is well-positioned to capitalize on future growth opportunities.

Strategic Importance of the Investment:

The investment of ₹5 crores in Shakti EV Mobility Private Limited underscores Shakti Pumps' commitment to expanding its footprint in the electric vehicle sector. The company recognizes the immense potential of the electric vehicle industry and aims to leverage its expertise in energy-efficient technologies to contribute to India’s electric mobility transition.

By enhancing its subsidiary’s capabilities, Shakti Pumps aims to strengthen its market presence and offer innovative solutions to meet the growing demand for electric vehicle components.

Conclusion:

With this strategic investment, Shakti Pumps (India) Limited aims to position itself as a key player in India’s evolving electric vehicle landscape. The company remains committed to driving innovation and sustainability by expanding the capabilities of its wholly-owned subsidiary, Shakti EV Mobility Private Limited.

The announcement reflects the company's focus on long-term value creation and exploring growth opportunities in the electric mobility space. The successful completion of this investment is expected to bolster Shakti EV Mobility’s operations and accelerate its contribution to India’s electric mobility revolution.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited,Identixweb Limited.

The Closed IPOs are  ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.