Mumbai: Oswal Pumps, a leading manufacturer of solar and water pumps, is launching its Initial Public Offering (IPO) on June 13. The IPO will close on June 17. The company has fixed the price band at Rs 584-614 per share. Investors can bid for a minimum of 24 shares, and in multiples after that.
The IPO includes a fresh issue of shares worth Rs 890 crore. It also includes an offer for sale of 81 lakh shares by promoter Vivek Gupta, who owns 25.17 percent in the company.
Once the issue is complete, Oswal Pumps’ market value is expected to be between Rs 6,700 and Rs 6,998 crore.
The company will use Rs 89.86 crore for buying new machines and equipment. It will invest Rs 273 crore in its subsidiary, Oswal Solar, to build a new factory in Haryana. Around Rs 280 crore will be used to repay loans. An additional Rs 31 crore will be used to pay off loans taken by Oswal Solar.
Oswal Pumps was started in 2003. It makes many products like solar pumps, submersible pumps, pressure pumps, electric motors, and control panels. Its products are used in homes, farms, and industries.
By August 31, 2024, the company had installed over 26,000 solar pump systems under the government’s PM-KUSUM scheme. These were set up in states such as Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
In the financial year 2023-24, Oswal Pumps earned Rs 758.57 crore in revenue, up from Rs 385.04 crore the year before. Its net profit also rose to Rs 97.67 crore from Rs 34.20 crore.
In the first nine months of FY25, the company posted a revenue of Rs 1,065.67 crore and a net profit of Rs 216.71 crore.
The IPO is managed by IIFL Capital Services, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth. MUFG Intime India is the registrar.
The share allotment is expected on June 18. The shares may be listed on BSE and NSE on June 20.
