Oswal Pumps IPO subscribed 1.6x; strong HNI demand ahead of close

Qualified investors subscribe 27 per cent, wealthy investors 4.5 times, and retail investors 1.1 times as Oswal Pumps IPO nears close with ₹416 crore anchor backing

The initial public offering (IPO) of Oswal Pumps was subscribed 1.6 times on Monday, the penultimate day of the issue. Qualified institutional buyers subscribed 27 per cent, wealthy investors 4.5 times, and retail investors 1.1 times.

 

Oswal Pumps raised ₹416 crore from anchor investors last week ahead of its IPO.

 

The company has priced its IPO between ₹584 and ₹614 per share. The IPO will conclude on Tuesday.

 

The ₹1,387-crore IPO comprises a fresh issue of ₹890 crore and an offer for sale of ₹497 crore.

 

The company plans to utilise the proceeds from the fresh issuance to fund capital expenditure, invest in its wholly owned subsidiary Oswal Solar in the form of equity, finance the setting up of new manufacturing units in Karnal, and repay debt incurred by itself and its subsidiaries.

 

Oswal Pumps manufactures solar-powered and grid-connected submersible and monoblock pumps, as well as electric motors under the 'Oswal' brand. The company commenced operations in 2003 by manufacturing low-speed monoblock pumps. Over the years, it has expanded its operations to include grid-connected high-speed monoblock pumps, grid-connected submersible pumps and electric motors.