New Delhi: Oswal Pumps on Friday floated its ₹1,387-crore initial public offering (IPO) with the issue subscribing 17 per cent so far on the first day of the bidding process.
The issue, with a price band of ₹584-614 per share, will conclude on June 17.
As of 2.44 pm, the IPO had received bids for 26,97,624 shares against the 1,62,12,980 shares on offer, data with the National Stock Exchange (NSE) showed.
The company’s IPO is a combination of a fresh issue of shares valued at ₹890 crore and an offer-for-sale (OFS) of 81 lakh shares worth ₹497.34 crore, at the upper end of the price band, by promoter Vivek Gupta. This aggregates the issue size at ₹1,387.34 crore.
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.
Oswal Pumps commenced operations in 2003 by manufacturing low-speed monoblock pumps. 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.
A day before opening the IPO, Oswal Pumps mobilised over ₹416 crore from anchor investors.
Oswal Pumps’ revenue from operations jumped 97 per cent to ₹758.6 crore in FY24 from ₹385 crore in the preceding year, while profit rose to ₹97.66 crore from ₹34.20 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.
IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management are the book-running lead managers to the issue. PTI
