Oswal Pumps IPO to open on June 13; check price band, issue size, lot size, GMP & more

The initial public offering (IPO) of Oswal Pumps shall open for bidding on Friday, June 13. The manufactures of varied pumps shall be offering its shares in the range of Rs 584-614 apiece. Investors can apply for a minimum of 24 equity shares and its multiples thereafter, until June 17, Tuesday.

The IPO of Oswal Pumps includes a fresh share sale of Rs 890 crore, while an offer-for-sale (OFS) of up to 81,00,000 equity shares by its promoter amounting to Rs 497.34 crore. At the upper end of the price band, the company is looking to raise a total of Rs 1,387.34 crore via IPO. Anchor book for the issue shall open on Thursday, June 12.

Incorporated in 2003, Karnal-based Oswal Pumps is a manufacturer and distributor of pumps. It offers a diverse range of products catering to domestic, agricultural and industrial applications including solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires & cables, and electric panels.

Oswal Pumps had executed orders for 26,270 turnkey solar pumping systems directly under the PM-KUSUM Scheme for several states, including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra, as of August 31, 2024 It operates a manufacturing facility located in Karnal, Haryana, which covers a total land area of 41,076 square meters as of March 31, 2024.

The net proceeds from the issue shall be utilized towards  funding certain capital expenditure of the company; pre-payment or re-payment of certain outstanding borrowings; investment in the wholly-owned subsidiary- Oswal Solar to set up new manufacturing unit and pre-payment or repayment of certain outstanding borrowings; and general corporate purposes.

For the nine-months ended on December 31, 2024, Oswal Pump reported a net profit of Rs 216.71 crore with a revenue of Rs 1,067.34 crore. The company clocked a net profit of Rs 97.67 crore with a revenue of Rs 761.23 crore for the financial year 2023-24. Oswal Pumps was commanding a grey market premium of Rs 50 apiece, suggesting a 8 per cent gains for investors.

The company has reserved 50 per cent share for the qualified intuitional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation reserved for them. Retail investors will have 35 per cent of the net offer allocated towards them.

IIFL Capital Services, Axis Capital, CLSA India, JM Financial, Nuvama Wealth Management are the book running lead managers of the Oswal Pumps IPO, while MUFG Intime India (Link Intime) is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE with Friday, June 20 as the tentative date of listing.