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Oswal Pumps Receives Approval from SEBI to Raise Funds via IPO

Haryana-based Oswal Pumps, a manufacturer of solar-powered and grid-connected submersible and monoblock pumps, electric motors, and solar modules, has received SEBI approval for its IPO comprising an INR 1,000 crore fresh equity issue and an offer-for-sale of 1.13 crore shares.

January 03, 2025. By Mrinmoy Dey

Haryana-based Oswal Pumps, a manufacturer of solar-powered and grid-connected submersible and monoblock pumps and electric motors, and solar modules, has received the nod from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The company filed its draft red herring prospectus (DRHP) with SEBI on September 17, 2024.

The IPO includes a fresh equity issue worth INR 1,000 crore and an offer-for-sale of 1.13 crore equity shares by promoter Vivek Gupta.

As per the DRHP, the company will use proceeds from the fresh issue for capital expenditure, establishing new manufacturing units in Karnal, Haryana, repaying debts, and general corporate purposes.

The company will invest INR 419.16 crore in its wholly-owned subsidiary, Oswal Solar in the form of debt or equity, for funding the setting up of new manufacturing units at Karnal, Haryana, it said. Further, the company will invest another INR 16 crore in Oswal Solar to prepay or repay debts.

Oswal Pumps will use INR 89.36 crore from the IPO proceedings for capital expenditure and another INR 235 crore will be used to prepay or repay debts of the company.

The IPO is being managed by IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management. Link Intime India is the registrar for the IPO.

The company has two manufacturing facilities situated at Karnal, Haryana. One facility is dedicated to the production of pumps and motors, while the other focuses on manufacturing solar modules.

“As of August 31, 2024, we have executed orders for 26,270 turnkey solar pumping systems directly under the PM Kusum Scheme for several states such as Haryana, Rajasthan, Uttar Pradesh and Maharashtra,” the company mentioned in the DRHP.

In FY24, the company reported a revenue from operations of INR 758.57 crore, almost double of INR 385 crore it reported for FY23. The company’s restated profit for the year too soared to INR 97.66 crore in FY24 from INR 34.19 crore in FY23.

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Oswal solar expansion