Irrigation & Allied Services Stock Jumps 6% After Receiving $6 Million Advance From Uganda

Shares of Shakti Pumps (India) Ltd are rising today in early trade. The stock has soared by 5.36% till 11:16 am after it has received advance worth USD 6 million from EXIM Bank on behalf of Uganda Government to Supply Solar‐powered Water Pumping System.

The company will begin the project execution from October 2022 which was awarded a contract in March 2021 from the Government of Uganda.

Stock Outlook: The current market price of the stock is Rs 510 apiece on BSE with a surge of 5.36%. The stock's 52-week high is quoted at Rs 833 apiece and 52-week low is Rs 415 apiece. The stock has gained 6.08% on NSE at 516 apiece.

Market Capitalisation: The company has a market capitalisation of Rs 946.58 crore at the time of writing the report. The stock has risen 5% in the last 5 years, 71% in the last 3 years, and fallen 29% in the last 1 year.

About The Company: The company came into existence in the year 1995 and operates in the Irrigation & Allied Services sector.

According to the company's regulatory filing, "Shakti Pumps (India) Limited (SPIL), India's leading manufacturer of energy‐efficient pumps and motors has received advance worth USD 6 million from Export‐Import Bank of India (EXIM bank) on behalf of the Government of Uganda represented by the Ministry of Water and Environment for supplying solar‐powered water pumping system. The company will begin the project execution from October 2022."

Dinesh Patidar, Chairman and Managing Director, SPIL said, "It is a moment of pride for us at Shakti Pumps for partnering with the Government of Uganda on this project. This will augur well with our green energy expansion plans in Africa while generating employment opportunities for the local citizens. Export remains our focus area which has contributed 15.7% of revenue in FY22 amounting to around INR 1,851 million with the continent currently contributing ~10% share in the overall export business for SPIL."

Shakti Pumps already has an approval of two patents for its unique products out of the already filed 29 patents, giving the company an edge over peers in India and international markets in the renewable energy space.