Oswal Pumps files IPO papers with SEBI, to raise Rs 1,000 crore via fresh issue

Oswal Pumps IPO

Haryana-based Oswal Pumps has filed draft red herring prospectus with the capital markets regulator SEBI on September 17, to raise funds via initial public offering.

The IPO is a combination of fresh issuance of equity shares worth Rs 1,000 crore, and an offer-for-sale of 1.13 crore equity shares by promoter Vivek Gupta.

The company manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors, which are sold under the Oswal brand. It has executed orders for 26,270 turnkey solar pumping systems directly under the PM Kusum Scheme for states such as Haryana, Rajasthan, Uttar Pradesh and Maharashtra.

The turnkey solar pumping systems provider will utilise fresh issue proceeds for capital expenditure, and setting up of new manufacturing units at Karnal, Haryana. Further, it will repay debts through IPO funds, and the remaining money will be utilised for general corporate purposes.

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Oswal Pumps competes with listed peers like Kirloskar Brothers, Shakti Pumps, WPIL, KSB, and Roto Pumps.

The financial performance of the company remained strong with profit in fiscal 2024 growing 186 percent to Rs 97.7 crore compared to previous fiscal on robust topline and operating numbers. Revenue from operations increased by 97 percent to Rs 758.6 crore during the same period.

EBITDA (earnings before interest, tax, depreciation and amortisation) during the year ended March 2024 surged 160 percent to Rs 150.1 crore with margin expanding by 480 bps to 19.8 percent compared to FY23.

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