Oswal Pumps, a vertically integrated solar pump manufacturer, has fixed the price band of ₹584-614 for its upcoming initial public offering (IPO) that will open on June 13. The IPO, a mix of fresh issue of ₹890 crore and an offer-for-sale of 81 lakh shares worth ₹497.34 crore by its promoter Vivek Gupta, will close on June 17.
Shares will be listed on the mainboards of BSE and the National Stock Exchange.
Investors can bid for a minimum of 24 equity shares. The offer is being made through the book-building process, wherein not more than 50 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15 per cent of the offer shall be available for allocation to non-institutional bidders, and not less than 35 per cent of the offer shall be available for allocation to retail individual bidders.
According to its DRHP, proceeds from its fresh issuance, to an extent of ₹89.86 crore will be utilised for funding certain capital expenditure of the company; ₹272.76 crore for investment in its wholly owned subsidiary, Oswal Solar, in the form of equity, for funding the setting up of new manufacturing units at Karnal, Haryana; ₹280 crore for pre-payment/re-payment, in part or full, of certain outstanding borrowings availed by the company; and ₹31 crore to meet outstanding borrowings availed by Oswal Solar; and general corporate purposes.
Oswal Pumps manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules, under ‘Oswal’ brand.
The 22-year-old company had executed orders for 38,132 turnkey solar pumping systems directly under the PM Kusum Scheme for several States such as Haryana, Rajasthan, Uttar Pradesh and Maharashtra. It also supplied pumps to certain vendors empanelled under the Mukhyamantri Saur Krushi Pump Yojana launched by the Maharashtra government in 2019.
The company manufacturing facility is located at Karnal, Haryana.
Oswal Pumps’ revenue from operations increased by 97.01 per cent from ₹385.04 crore in FY23 to ₹758.57 crore in FY24, primarily due to an increase in the revenue from total sale of products. Profit rose from ₹ 34.19 crore in FY23 compared to ₹ 97.66 crore in FY24.
For the nine months ended December 31, 2024, revenue from operations stood at ₹1,065.67 crore and Profit after tax stood at ₹216.71 crore.
IIFL Capital Services Ltd, Axis Capital, CLSA India Private Ltd, JM Financial Ltd and Nuvama Wealth Management Ltd are the book-running lead managers, and MUFG Intime India Private Ltd is the Registrar of the issue.