Oswal Pumps Set to Launch IPO for Fundraising

Haryana-based Oswal Pumps is gearing up for an IPO to raise funds, including a fresh equity issue worth Rs 1,000 crore and an offer-for-sale by promoter Vivek Gupta. The funds will be used for capital expenditures, investments, new manufacturing units, and other corporate purposes. The company has seen a significant increase in revenue and profit.

Haryana-based Oswal Pumps has submitted preliminary documents to the capital markets regulator, SEBI, for a forthcoming initial public offering (IPO). The IPO comprises a fresh equity issue amounting to Rs 1,000 crore as well as an offer-for-sale (OFS) of up to 1.13 crore equity shares by promoter Vivek Gupta, as per the draft red herring prospectus (DRHP) filed recently.

The firm might also opt for a pre-IPO placement to gather up to Rs 200 crore. Should that occur, the fresh issue size will be adjusted accordingly. Proceeds from the fresh issue are slated for funding the company's capital expenditures, investing in its wholly-owned subsidiary Oswal Solar in forms of debt or equity, setting up new manufacturing units in Karnal, Haryana, as well as for debt repayment and general corporate purposes.

Oswal Pumps, which started operations in 2003, has evolved from manufacturing low-speed monoblock pumps to a diversified product line including grid-connected and solar-powered pumps, electric motors, and solar modules. The company's distribution network has widened to 636 as of March-end 2023. Revenue soared by 97% to Rs 758.6 crore in fiscal 2024, with profit after tax reaching Rs 97.66 crore. IIFL Securities, Axis Capital, CLSA India, JM Financial and Nuvama Wealth Management are managing the IPO.

(With inputs from agencies.)