Oswal Pumps IPO to open on Jun 13; 10 key things to know before you subscribe

3) Subscription Dates: The initial share-sale will open public subscription on June 13 and conclude on June 17.

4) IPO Details: It is a combination of fresh issue of shares valued 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.
Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional buyers.

5) Objective of the issue: 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.

6) Company details: 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.

7) Key financials: Oswal Pumps' revenue from operations increased 97 percent 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.

8) Oswal Pumps IPO allotment date: The shares are likely to be allotted to successful bidders on Wednesday, June 18.

9) Oswal Pumps Listing Date: The shares will be listed on Friday, June 20.

10) The analysts at Bajaj Broking have recommended 'Subscribe for Long-term' rating to the issue. "If we attribute FY25 annualized super earnings to its postIPO fully diluted paid-up equity capital, then the asking price is at a P/E of 24.33. Based on FY24 earnings, the P/E stands at 71.65. Thus, the issue is aggressively priced," it added.

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