Shakti Pumps shares rise 5%, hit record high; here's why 

Shares of Shakti Pumps (India) Ltd surged to record high in early deals today after the firm said its board has approved raising of Rs 400 crore via qualified institutional placement (QIP).Shakti Pumps shares zoomed 5% to a high of Rs 1274 against the previous close of Rs 1213.50 on BSE. Total 0.52 lakh shares of Shakti Pumps changed hands amounting to a turnover of Rs 6.50 crore. Market cap of the firm rose to Rs 15,314.23 crore.

Shakti Pumps stock fell to a 52 week low of Rs 168.37 on Jnauary 8, 2024. Shakti Pumps shares have a beta of 0.6, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 78.5, signaling it's trading in the overbought zone. Shakti Pumps shares are trading higher than 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

In the last one year, the Shakti Pumps stock has surged 650.78% and risen 1813% in two years. 

"Fund Raising: Raising of funds for an aggregate amount of up to and not exceeding Rs. 400 Crores, in one or more tranches and/or one or more issuances, by way of qualified institutions placement(s) in accordance with the applicable provisions of the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018, as amended and any other applicable law, in such manner, and on such terms and conditions as may be deemed appropriate by the Board in its absolute discretion, subject to the receipt of necessary approvals, including the approval of the members of the Company and such other regulatory and statutory approvals as maybe
required.

2. To give effect to the above, the Board has also authorized the Treasury Committee of the Board to, inter-alia; decide the terms and conditions of the proposed fund raise.

3. To approve the postal ballot notice for the aforesaid issuance," said the firm in a communication to bourses. 

Shakti Pumps India Limited is a business of manufacturing multiple kinds of pumps including the ones which are submersible, solar, pressure booster, agricultural and a few others, which are used for domestic, industrial and agricultural purposes. The company exports their pumps to almost 100 countries.