Oswal Pumps IPO: Check objectives, strengths, risks, key dates, and more

Oswal Pumps IPO date: The initial public offering of Oswal Pumps will open for subscription on Friday, June 13. The issue, which has not announced a price band yet, will conclude on June 17.

The initial share sale is a mix of fresh issuance of ₹890 crore and an offer for sale (OFS) component of 0.81 crore shares.

Oswal Pumps IPO: Objectives

The net proceeds from the fresh issue will be used for

• Funding capital expenditure of the firm
• Investment in a wholly-owned unit Oswal Solar
• Repayment of debt
• Corporate general purposes

Oswal Pumps IPO: Key dates

Oswal Pumps IPO allotment will be finalised on Wednesday, June 18. Refund for non-allotees will be initiated on June 19. The shares will be credited to the Demat account of successful investors on the same date.

The listing of Oswal Pumps shares will take place on NSE and BSE on June 20.

Oswal Pumps IPO: Strengths

• The company is among the largest suppliers of solar-powered agricultural pumps under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme.
• Its operations are vertically integrated, encompassing the production of components for pumps and the manufacturing of solar modules for solar-powered pumps.
• Oswal Pumps offers an array of solar-powered and grid-connected submersible and monoblock pumps and electric motors, apart from solar modules under the 'Oswal' brand.
• The firm has a strong presence in major agricultural states such as Haryana.
• It has an extensive network of 925 distributors in India, as of December 2024.

Oswal Pumps IPO: Risks

• The company derives a significant portion of its revenue from the supply of turnkey solar pumping systems awarded on a tender basis by state and central governments under the PM Kusum Scheme. If the government reduces funding for the PM Kusum Scheme or the firm is unable to obtain a contract, it may impact its business, financial condition and cash flows.
• The company derives a key portion of its revenue from sales of products in Haryana. Any adverse developments affecting operation in this region can impact business.
• The company's top 10 customers contributed 79.5% to its revenue for the fiscal year 2024. The loss of these customers can affect financial condition.
• The company's operations are supported by two manufacturing facilities situated in Haryana's Karnal. If any event affects the company's operations, it may affect its business.

Oswal Pumps is engaged in making different types of pumps, such as solar pumps, pressure pumps, and submersible pumps.

CLSA India, JM Financial, Axis Capital, IIFL Capital Services, and Nuvama Wealth Management are the issue's book-running lead managers, while MUFG Intime India (formerly Link Intime India) is the registrar.