The investment was made by subscribing to 60,00,000 (sixty lakh) equity shares with a face value of Rs 10 each.
Shakti EV Mobility, incorporated on 16th December 2021, is engaged in the manufacturing of electric vehicle motors for two-wheelers, three-wheelers, four-wheelers, special-purpose electric vehicle motors, and chargers for electric vehicles. The company operates in India, and its turnover as of 31st March 2024 stands at Rs 430.09 lakh.
The purpose of the investment is to initiate and expand the business operations of the subsidiary. The investment will be made in exchange for equity shares, which will be issued in accordance with the agreement between the two entities.
Since Shakti EV Mobility is a wholly owned subsidiary of Shakti Pumps (India), no government or regulatory approvals are required for this investment. The acquisition does not fall under related party transactions, and therefore, the arm’s length basis is not applicable.
Following this investment, the consolidated investment in Shakti EV Mobility will amount to Rs 45 crore.
Shakti Pumps (India) is engaged in manufacturing of pumps, motors, & their spare parts. The core products of the company are engineered pumps, industrial pumps, solar pumps, etc.
The company’s consolidated net profit surged 130.3% to Rs 104.05 crore in Q3 FY25 as against Rs 45.19 crore posted in Q3 FY24. Revenue from operations jumped 30.9% YoY to Rs 648.77 crore in the quarter ended 31 December 2024.
The scrip fell 4.96% to settle at Rs 836.20 on the BSE.