Oswal Pumps, based in Haryana, has submitted its IPO application to Sebi, aiming to raise ₹1,000 crore. The IPO will include a fresh issue of shares worth ₹1,000 crore and an offer-for-sale of up to 1.13 crore shares by promoter Vivek Gupta.
The company might also raise up to ₹200 crore before the IPO, which would reduce the size of the fresh issue.
The money from the IPO will be used for:
- Funding capital expenditures
- Investing in its subsidiary, Oswal Solar
- Setting up new manufacturing units in Karnal, Haryana
- Paying off debt
- General corporate purposes
Founded in 2003, Oswal Pumps started by making low-speed monoblock pumps and has since expanded to include high-speed monoblock pumps, submersible pumps, and electric motors. They also produce solar-powered pumps and solar modules under the ‘Oswal’ brand.
The company has grown its network of distributors from 473 in March 2022 to 636 by the end of this year. It competes with companies like Kirloskar Brothers Ltd, Shakti Pumps (India) Ltd, and others.
In fiscal 2024, Oswal Pumps’ revenue rose to ₹758.6 crore, up from ₹385 crore the previous year, and their profit after tax increased to ₹97.66 crore from ₹34.20 crore.
The lead managers for the IPO are IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management.
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