The turnkey solar pumping systems provider under PM Kusum Yojana, Oswal Pumps, is all set to open its public offering from June 13 onwards. Investors can bid for the IPO till June 17. The company plans to mop up around Rs 1,400 crore through a combination of fresh shares and an offer for sale.
Oswal Pumps IPO: OFS and fresh issue
The IPO has an OFS of 81 lakh shares to raise almost Rs 500 crore. The money raised through OFS will go to the promoters and other selling shareholders. Meanwhile, the company will receive Rs 890 crore from the total IPO amount, which the company will use to meet various objectives.
Oswal Pumps IPO: Allotment and listing
The allotment for the Oswal Pumps IPO is expected to be finalised by June 18, while the listing on BSE and NSE is likely to be on June 20, as per the tentative schedule.
Oswal Pumps IPO: GMP
The company’s shares are garnering a premium of 13.52% in the grey market. This means that the shares of Oswal Pumps are selling Rs 83 higher than the issue price of Rs 614, indicating that the IPO might be beneficial.
Oswal Pumps IPO: Issue price and lot size
Investors can pace their bids in a range of Rs 584 to Rs 614 per equity share. The minimum investment required by a retail investor is 24 shares in an application, totalling Rs 14,016.
However, a small non-institutional investor (NII) can bid for at least 14 lots, that is 336 shares, amounting to Rs 2 lakh. A big NII can bid for 68 lots of 1,632 shares, equalling Rs 10 lakh.
Oswal Pumps details
Oswal Pumps is a manufacturer and distributor of pumps that has executed over 26,000 orders on a turnkey basis for solar pumping systems under the PM-KUSUM scheme. It has executed orders in various states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
Apart from solar pumps, the company offers other products such as submersible pumps, monoblock pumps, pressure pumps, sewage pumps, etc. Oswal Pumps’ manufacturing unit is located in Haryana’s Karnal.
Bajaj Broking on Oswal Pump
“Oswal Pumps is one of the leading players in the solar pumps segment. It marked growth in its top and bottom lines. A boost in bottom lines from FY24 onwards is attributed to its shift to the solar pump segment. The company will be debt-free post IPO, and the planned expansion will boost its income going forward,” said Bajaj Broking in an IPO note.
However, the broker added that based on its recent financial data, the issue appears aggressively priced, and only well-informed investors should bid for the IPO and stay invested for “medium to long-term.”
Oswal Pumps IPO: Book runners and registrar
IIFL Capital Services, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management are the book-running lead managers of the IPO, while MUFG Intime India (former Link Intime) is the registrar for the issue.