Oswal Pumps' ₹1,387 crore IPO subscribed 33% on Day 1 so far; check price band and lot size

Oswal Pumps on Friday floated its ₹1,387-crore initial public offering (IPO) with the issue subscribing 33% 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 3:26 pm, the IPO had received bids for 53,63,184 shares against the 1,62,12,980 shares on offer, consolidated 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.

Oswal Pumps' revenue from operations jumped 97% 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% for retail investors and the remaining 15% for non-institutional buyers.

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