Oswal Pumps files IPO papers with Sebi to raise Rs 1k cr via fresh issue

Haryana-based Oswal Pumps has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The IPO is a combination of fresh issue of equity shares worth Rs 1,000 crore and an offer-for-sale (OFS) of up to 1.13 crore equity shares by promoter Vivek Gupta, according to the draft red herring prospectus (DRHP) filed on Tuesday.

The company may consider raising up to Rs 200 crore in a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

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 its operations in 2003 by manufacturing low-speed monoblock pumps and 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, and sells under the 'Oswal' brand.

It has an extensive network of distributors, increasing from 473 as of March 31, 2022, to 636 as at March-end this year.

Oswal Pumps compares itself with listed peers such as Kirloskar Brothers Ltd, Shakti Pumps (India) Ltd, WPIL Ltd, KSB Ltd, and Roto Pumps Ltd.

Oswal Pumps' revenue from operations increased by 97 per cent to Rs 758.6 crore in fiscal 2024 from Rs 385 crore in the preceding year and profit after tax 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.