CALCULATE YOUR SIP RETURNS

Shakti Pumps Hits Upper Circuit Amid Bonus Announcement

30 September 20243 mins read by Angel One
Shakti Pumps (India) Ltd hits a 5% upper circuit following the announcement of a board meeting to discuss a 5:1 bonus issue, amidst a bearish market.
Shakti Pumps Hits Upper Circuit Amid Bonus Announcement
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Shakti Pumps Soars on Bonus Issue Announcement

Shakti Pumps (India) Ltd (SPIL), a leading manufacturer of solar pumps, submersible pumps, booster pumps, and other components for solar setups, saw its shares hit a 5% upper circuit limit today. This strong movement came even as the broader market faced significant pressure, with the Sensex and Nifty both dropping over 1% and India VIX, a measure of market volatility, spiking by nearly 7%. So, what has driven this rally amid an otherwise tumultuous day in the market?

Why Did Shakti Pumps’ Stock Rally?

The rally in Shakti Pumps’ stock came on the back of an exciting corporate announcement. The company disclosed that it would hold a board meeting on Monday, October 7, 2024, to discuss the issuance of bonus shares. According to the filing, the board will consider a 5:1 bonus issue, which means every existing shareholder will receive five additional shares for each share they currently hold.

This proposal, however, will need approval from the shareholders, and the company has yet to announce the record date for this corporate action. Despite this pending approval, the news has ignited significant buying interest, pushing the stock to an upper circuit amidst an otherwise bleak day for the market.

A Stellar Year for Shakti Pumps

It’s not just today’s bonus issue announcement that has put Shakti Pumps in the spotlight. The stock has been on a tear this year, quadrupling investor wealth with an incredible 310% rise year-to-date. SPIL has clearly captured the attention of both retail and institutional investors, driven by its focus on solar energy solutions and government-backed initiatives for rural electrification.

Understanding Shakti Pumps and Its Business

Shakti Pumps is a key player in the renewable energy sector, catering predominantly to government orders focused on solar-powered irrigation for farmers. The company also supplies its pumps for residential and industrial use. With three manufacturing facilities located in Madhya Pradesh, SPIL has an impressive installed capacity of 0.8 million units per annum, ensuring it can meet both domestic and international demand.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Enjoy ₹0 Account Opening Charges

Join our 2 Cr+ happy customers

+91
Enjoy ₹0 Account Opening Charges
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Send App Link
Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Enjoy ₹0 Account Opening Charges