Oswal Pumps Files DRHP to raise funds via IPO

18 Sep 2024 , 09:12 AM

Haryana-based Oswal Pumps has files its DRHP to SEBI to raise funds through an initial public offer (IPO). According to the draft papers, the IPO will include a fresh equity issue worth ₹1,000 crore and an offer-for-sale of 1.13 crore equity shares by promoter Vivek Gupta.

The company will use net proceeds from the fresh equity issue towards capital expenditure, the establishment of new manufacturing units in Karnal, Haryana, debt repayment, and general corporate purposes.

Oswal Pumps specializes in manufacturing solar-powered and grid-connected submersible and monoblock pumps, as well as electric motors, under the “Oswal” brand. The company has executed over 26,270 turnkey solar pumping system projects under the PM Kusum Scheme across states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.

Financially, Oswal Pumps reported profits surging by 186% to ₹97.7 crore, driven by strong revenue growth and operational efficiency. Its revenue from operations jumped by 97% to ₹758.6 crore, while EBITDA increased by 160% to ₹150.1 crore, with margins expanding by 480 basis points to 19.8%.

The IPO is being managed by IIFL Capital Services, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management as book running lead managers.