Shakti Pumps Okays Share Capital Hike To Rs 190 Crore

Shakti Pumps (India) Ltd.'s board of directors approved the increase in the authorised share capital of the firm by Rs 150 crore, according to an exchange filing.

The share capital increased from Rs 40 crore to Rs 190 crore and is subject to the approval of the shareholders.

According to the filing, the bonus equity shares will be issued out of a securities premium account available based on audited financial statements as on March 31, 2024.

The recommended issue of bonus shares is to be in the ratio of 5:1.

This means five new fully paid up equity shares of Rs 10 each for every one existing fully paid up equity share of Rs 10 each will be given to the eligible shareholders of the company.

This ratio is subject to approval from the company's board members.

The record date is also yet to be announced and will be conveyed to the respective exchanges in due course of time.

A securities premium of Rs 100 crore is required for implementing the bonus issue, the exchange filing said.

The board also subsequently approved the postal ballot notice for seeking the consent of members of the company for increase in authorised share capital.

The firm's board also okayed the bonus issue and appointment of Ramakrishna Sataluri as an additional and non-executive and non-independent director of the company, which is subject to the approval of company members through postal ballot.

The estimated date by which the bonus shares would be credited is on or before Nov. 30, 2024.

As on March 31, 2024 (as per latest audited balance sheet), these were the amounts for the share premium available for capitalisation:

• Securities premium: Rs 28.6 lakh.

• General reserve: Rs 9.75 lakh.

• Retained earnings: Rs 27.3 lakh.

Shares of Shakti Pumps (India) Ltd. closed 5% lower at Rs 4,319.80 apiece on NSE, compared to a 0.87% decline in the NSE Nifty 50.