Oswal Pumps' IPO to open on Jun 13; sets price band of Rs 584-614/share

New Delhi:  Oswal Pumps on Tuesday said it has fixed a price band of Rs 584 to Rs 614 per share for its Rs 1,387-crore initial public offering (IPO).

The initial share-sale will open public subscription on June 13 and conclude on June 17, the company said in a statement.

The IPO is a combination of fresh issue of shares valued Rs 890 crore and an offer-for-sale (OFS) of 81 lakh stocks worth Rs 497.34 crore, at the upper end of the price band, by promoter Vivek Gupta. This aggregates the issue size at Rs 1,387.34 crore.

Proceeds from the fresh issue will be used for funding certain capital expenditures of the company; investment in wholly owned subsidiary Oswal Solar in the form of debt or equity, setting up new manufacturing units at Karnal, Haryana, payment of debt, and for general corporate purposes.

Oswal Pumps commenced operations in 2003 by manufacturing low-speed monoblock pumps and over the years, it expanded operations to manufacture 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, and sells under the 'Oswal' brand.

Oswal Pumps' revenue from operations increased 97 per cent to Rs 758.6 crore in FY24 from Rs 385 crore in the preceding year, while profit rose to Rs 97.66 crore from Rs 34.20 crore.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional buyers.

IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management are the book-running lead managers to the issue.