Oswal Pumps raises ₹416 crore from anchor investors.
Oswal Pumps raised ₹416.2 crore from anchor investors ahead of its IPO open.
The company informed the exchanges that it has allocated 67.78 lakh equity shares at 614 per share on Thursday, June 12, to anchor investors.
Some of the marquee institutions that participated in the anchor included Societe Generale, BNP Paribas, Smallcap World Fund Inc, ICICI Prudential, Aditya Birla Sunlife, Kotak Mahindra MF, Quant MF, Amundi Funds, 360 One, Motilal Oswal MF, Bandhan Small Cap Fund, Edelweiss MF, Troo Capital, Nuvama MF, Sundaram MF, Edelweiss Life Insurance, Mahindra Manulife, among others.
Oswal Pumps IPO: What brokerages say
SBI Securities has recommended investors subscribe to the issue with a long-term investment horizon. It said that the company is among the largest suppliers of solar pumps under the PM-KUSUM scheme for FY23 and FY24, and is one of the few players in India with vertically integrated, turnkey solar pumping system capabilities.
The company currently has an order book worth ₹1,100 crore, which is 0.8x its annualised 9MFY25 revenue, along with a bid pipeline of ₹3,200 crore, indicating healthy growth visibility. However, a key overhang remains its high dependence on government projects and policies, as well as potential delays in cash flows.
Arihant Capital assigned a “subscribe for long term” rating for the issue. It said the upper price band of ₹614, the issue has a price-to-earnings ratio of 24.22x based on annualised nine months of FY26 earnings-per share of ₹25.4. It said Oswal Pumps has a strong market position and high growth potential in the solar pump industry, the company’s diversified product portfolio enables broad market reach and a strong distribution network is driving its market penetration and brand visibility.
BP Wealth said it has a “subscribe” rating for the Oswal Pumps issue. It said the issue is valued at a price-to-earnings ratio of 21.2x on the upper price band based on FY25 earnings (annualised), which is relatively cheaper compared to its peers.
GEPL Capital too has a “subscribe” rating for the issue. It said based on the company’s FY25 annualised earnings relative to its post-IPO paid-up capital, the issue is priced at a price-to-earnings ratio of 24x. GEPL Capital said it believes the company is fairly valued compared to its peers and healthy profit after tax, revenue, earnings before interest tax depreciation and amortisation (EBITDA) of 140%, 45% and 97% CAGR respectively, from FY22 to FY24.
Oswal Pumps IPO: Price band
The company has fixed a price band of ₹584 – ₹614 per share for its initial share sale. The investors can bid for a minimum of 24 shares and in multiples of 24 shares thereafter.
Oswal Pumps IPO: Issue details
The issue comprises of fresh issue worth ₹890 crore and an offer for sale of 0.81 crore shares.
Oswal Pumps IPO: Objective
From the proceeds, ₹89.86 crore will be allocated for capital expenditure, ₹273 crore will be invested in subsidiary Oswal Solar to set up a new manufacturing facility in Haryana, ₹280 crore will go towards debt repayment, and ₹31 crore will be used to repay debt in Oswal Solar.
Company overview
Incorporated in 2003, Oswal Pumps offers a diverse range of products catering to domestic, agricultural, and industrial applications, including solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires & cables, and electric panels.
As of August 31, 2024, the company had executed orders for 26,270 turnkey solar pumping systems directly under the PM-KUSUM Scheme for states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
The company posted a revenue of ₹758.57 crore in FY24, up from ₹385.04 crore in the previous year. Net profit rose to ₹97.67 crore from ₹34.20 crore.
For the nine months ended December 2024, the company reported a revenue of ₹1,065.67 crore and a net profit of ₹216.71 crore.
IIFL Capital Services, Axis Capital, CLSA India, JM Financial, Nuvama Wealth Management are the book running lead managers, while MUFG Intime India (Link Intime) is the registrar for the issue.
The allotment for the Oswal Pumps IPO is expected to be finalised on June 18, while the company will be listing on BSE, NSE with a tentative listing date fixed as June 20.
