Oswal Pumps IPO: Solar pump manufacturer to raise ₹1,387 cr at a price band of ₹584-614 apiece

Oswal Pumps, a Haryana-based water and solar pumps manufacturer, has set the price band for its upcoming initial public offering (IPO) at ₹584-614 per share, and is looking at raising ₹1,387.34 crore at the upper end of the issue price.

The public issue, a combination of fresh issue of shares and offer for sale (OFS), opens for subscription on June 13 and closes on June 17, 2025. The anchor book will open for a day on June 12, 2025. The allotment for the Oswal Pumps IPO is expected to be finalised on June 18, while the tentative date for listing of shares on the BSE and the NSE is June 20, 2025.

The lot size for the public offer is 24, which means the minimum application amount for retail investors would be ₹14,736 for one lot.

According to the IPO documents filed with capital markets regulator the Securities and Exchange Board of India (Sebi), the Oswal Pumps IPO aims to raise ₹890 crore by issuing 14.5 million fresh equity shares and another ₹497.34 crore by the OFS of 8.1 million shares by shareholders.

Oswal Pumps intends to use capital raised from the issuance of fresh equities for investment in its subsidiary, repay debts, fund capital expenditure of the company, and meet general corporate purposes. It proposes to use ₹280 crore for payment of certain loans availed by the company; investment of ₹272.76 crore in the wholly-owned subsidiary, Oswal Solar, in the form of debt or equity, for funding the setting up of new manufacturing units at Karnal, Haryana. Besides, ₹89.86 crore will be utilised for funding certain capital expenditure of the company.

Oswal Pumps commenced its operations in 2003 with the manufacturing of low-speed monoblock pumps. Over the years, it expanded its operations to manufacture grid-connected high-speed monoblock pumps, grid-connected submersible pumps and electric motors.

The company manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules, which it sells under the ‘Oswal’ brand.

Oswal Pumps started supplying pumps to players participating and providing turnkey solar pumping systems under the PM Kusum Scheme, including Tata Power Solar Systems Limited.

As of December 31, 2024, it 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 Government of Maharashtra in 2019.

Oswal Pumps' revenue from operations increased by 97.01% from ₹385.04 crore in FY23 to ₹758.57 crore in FY24, primarily due to an increase in revenue from the total sale of products. Profit was ₹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 Limited, Axis Capital Limited, CLSA India Private Limited, JM Financial Limited, and Nuvama Wealth Management Limited are the book-running lead managers, and MUFG Intime India Private Limited is the registrar of the issue.

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