 "Shakti Pumps shares lock in 5% upper circuit on plans of 5:1 bonus issue")
Shares of Shakti Pumps were locked in the 5 per cent upper circuit on the BSE after the company announced a 5:1 bonus issue to its existing shareholders on Monday.
The company’s board of directors meet which is scheduled to be held on Monday, October 7, 2024 will consider the proposal for issue of bonus shares in the ratio of 5:1 i.e., five new fully paid up equity share of Rs 10 each for every one existing fully paid up equity share of Rs 10 to the equity shareholders, the company said in an exchange filing.
A bonus issue is when a company offers additional shares to its existing shareholders at no extra cost. The shares are usually given in proportion to the number of shares a shareholder already owns.
A bonus issue is when a company offers additional shares to its existing shareholders at no extra cost. The shares are usually given in proportion to the number of shares a shareholder already owns.
The board will also consider the proposal for an increase in the authorised share capital of the company and alter in the memorandum of association (MOA) of the company to such amount as may be determined by its board of directors.
The meeting will further consider the appointment of Ramakrishna Sataluri as an additional cum non-executive non independent director of the company, the filing said.
Shakti Pumps financial performance
Shakti Pumps. reported a 1,947.2 per cent year-on-year increase in net profit for the first quarter of FY2025, reaching Rs 90.49 crore, compared to Rs 4.42 crore in the same quarter last year, aligning with analysts' estimates. Revenue soared by 449.5 per cent to Rs 555.05 crore, up from Rs 101.01 crore in the previous year.
Shakti Pumps is a leading manufacturer of energy-efficient solar pumping solutions, stainless steel pumps, and motors, building a strong and trustworthy market presence over the years.
The company’s products cater to a wide range of aquatic-related sectors, including agriculture, water processing, industrial, construction, hospitality, households, and horticulture. Shakti Pumps manufactures and markets stainless steel water pumps and motors under the "Shakti" brand name.
Shakti Pumps share price history
Shakti Pumps share price has surged a whopping 221.87 per cent in the last six months against BSE’s Sensex rise of 14.4 per cent. Meanwhile, in the last one year the company’s shares have appreciated by 399.33 per cent, while Sensex climbed 28.1 per cent.
Its shares are trading at price to earnings valuation of 40.33 times, while having an earning per share of Rs 101.43. The company has a total market capitalization of Rs 8,605.98 crore.