Shakti Pumps Hits 52-week High On New Deal Worth Rs 1,603 Crores

Shakti Pumps, a leading player in the renewable energy sector, has witnessed a massive 20%surge in its shares today. The company hit a 52-week high, reaching Rs 1,034.90 in early trading. The cause behind this astounding upswing is the acquisition of a significant Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited (MSEDCL).

The Letter of Empanelment awarded to Shakti Pumps encompasses a staggering 50,000 Off-Grid Solar Photovoltaic Water Pumping Systems (SPWPS) pumps. These pumps are designated for the entire state of Maharashtra and fall under Component-B of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme Phase-III.

The total value of this colossal project stands at approximately Rs 1,603 crores, inclusive of GST, and is slated to be executed over the course of 24 months. The mammoth deal is a testament to Shakti Pumps' prowess in the renewable energy sector, reinforcing their position as a frontrunner in the industry.

This development comes on the heels of the company's recent board approval of a substantial Rs 114.29 crore investment in a wholly-owned subsidiary, Shakti EV Mobility Private Limited, over a span of five years. This strategic move underlines the company's commitment to diversify and expand their presence in the renewable energy ecosystem.

Shakti Pumps has been on a winning streak recently, with a Letter of Intent worth Rs 149.71 crore in their pocket, received on October 7. The letter pertains to the grid-connected solar water pumping system implementation under the PM KUSUM Scheme Component C and was awarded by Ajmer Viduyt Vitran Nigam Limited.

In August, Shakti Pumps clinched its first work order under the KUSUM-3 scheme from the Haryana Renewable Energy Department (HAREDA) for 7,781 pumps. This work order carries a total amount of approximately Rs 358 crores, solidifying the company's stature as a key player in the renewable energy market.

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was launched back in 2019 to encourage companies to establish 10,000 MW of decentralized grid-connected renewable energy power plants on barren lands. Under its various components, the scheme empowers farmers, cooperatives, and panchayats to set up renewable energy-based power plants and solar agriculture pumps. This is aimed at replacing traditional diesel-based irrigation systems and grid-connected agriculture pumps, a significant stride towards a greener and more sustainable future.

Shakti Pumps' success in securing this monumental deal underscores their commitment to renewable energy and positions them as a front-runner in this transformative industry. The company's remarkable surge in shares is indicative of the market's optimism in their endeavors, setting the stage for further growth and success in the renewable energy sector.

The Shakti Pumps stocks is currently trading with gains of 20% at Rs 1,110.50 per share. The stocks has risen for five out of the last seven trading session marking gains of 25% in the said days.