Shakti Pumps India Ltd is a leading global manufacturer and supplier of pumps and motors, specializing in applications such as floodwater management, oil and gas, agriculture, and industrial processes. Since its establishment in 1982, the company has been at the forefront of producing energy-efficient pumps and motors, primarily catering to the agricultural sector. Their products are utilized in various applications, including irrigation, industrial processes, pressure boosting in high-rise buildings, community water supply systems, waste and sewage treatment, and firefighting.
Recently, Shakti Pumps announced a 5:1 bonus share issue, offering 5 new fully paid equity shares of ₹10 each for every 1 existing fully paid equity share of ₹10. This issuance is pending approval from the company’s shareholders through a postal ballot process, with the record date for eligible shareholders to be announced shortly. The estimated date for crediting or dispatching the bonus shares is on or before November 30, 2024.
Currently, the company’s pre-bonus paid-up share capital stands at 2,00,35,100 equity shares, amounting to ₹20,03,51,000, while the post-bonus paid-up share capital will increase to 12,02,10,600 equity shares, totaling ₹120,21,06,000. The bonus shares will be issued from the company’s securities premium account, based on audited financial results as of March 31, 2024, which indicate a securities premium of ₹10,017.55 lakhs is available for this purpose.
On the stock performance front, analyst A.R. Ramachandran has noted that Shakti Pumps appears bearish on daily charts, with significant resistance at ₹5125. A daily close below the support level of ₹4800 could lead to a potential target of ₹4105 in the near term.
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