Oswal Pumps mobilises Rs 416 cr from anchor investors ahead of IPO

New Delhi, Jun 12 (PTI) Oswal Pumps on Thursday mobilised Rs 416.2 crore from anchor investors, a day before its initial share sale opening for public subscription.

The anchor investors are ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, Aditya Birla Sun Life MF, Quant MF, Societe Generale, Edelweiss Life Insurance, BNP Paribas, Paris-based asset manager Amundi and financial services company Capital Group, among others, according to a circular uploaded on BSE's website.

As per the circular, Oswal Pumps allotted 67,78,533 equity shares to these anchor investors at Rs 614 per equity share, which is also the upper end of the price band. The lower band of the IPO has been fixed at Rs 584 per share.

The initial public offering (IPO) will open on June 13 and conclude on June 17.

The IPO is a combination of a fresh issue of shares valued at 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 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.

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

The shares of the company will be listed on the BSE and the National Stock Exchange. PTI HG HG BAL BAL