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Salient features of the IPO

• Oswal Pumps Ltd. (OPL), is a vertically integrated solar pump manufacturer in India, is coming up with an IPO to raise around Rs. 1,363.04 - 1,387.34cr, which opens on 13th Jun. 2025 and closes on 17th Jun. 2025. The price band is Rs. 584 - 614 per share.

• This public issue is a combination of fresh issue (Rs. 890cr) and OFS (Rs. 473.04 - 497.34). The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will be utilizing Rs. 89.8cr for funding certain capital expenditure of the company; and Rs. 272.75cr for Investment in the wholly-owned Subsidiary, Oswal Solar, in the form of equity, for funding the setting up of new manufacturing units at Karnal, Haryana; Rs. 280cr for pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the company; Rs. 31cr for Investment in the wholly-owned Subsidiary, Oswal Solar, in the form of equity, for repayment/prepayment, in part or full, of certain outstanding borrowings availed by Oswal Solar. Residual proceeds will be used for general corporate purposes.

• One of the promoter & promoter group (P&PG) entities is participating in the OFS and are offloading 0.81cr equity shares. Post-IPO, the P&PG and public shareholders will have 80.07% and 19.93% stake in the company, respectively.

Key competitive strengths:

• One of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme, well positioned to capitalise on strong industry tailwinds

• Vertically integrated manufacturing competencies

• Strong engineering and design capabilities

• Comprehensive product portfolio in multiple product specifications

• Strong presence in major agricultural states in India including Haryana and growing presence in other states

• Extensive distribution network catering to a diversified customer base

Risk and concerns:

• Majority of the revenue comes from the government institutions under the PM Kusum Scheme

• Dependent on the agriculture sector

• Geographical concentration risk

• Customer concentration risk

• High working capital requirement

• Competition

Below are the key highlights of the company:

• Incorporated on July 15, 2003, OPL is one of the fastest-growing vertically integrated solar pump manufacturers in India by revenue. The company manufactures a wide range of products, including solar-powered and gridconnected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules which they sell under the ‘Oswal’ brand.

• Starting with the manufacturing of low-speed monoblock pumps, the company has, over the past 22 years, built extensive expertise across engineering, product design, manufacturing, and testing, enabling it to expand its operations significantly.

• OPL cater to the diverse requirements of end-users in the agricultural sector for irrigating fields; the residential sector for maintaining gardens and fountains, extracting water, supplying water to overhead tanks and cleaning households and small establishments; commercial premises such as shopping malls, offices and hotels; industries which use the pumps in boilers and water treatment, water transportation and sewage applications and use the electric motors in machinery applications and cooling tower systems.

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SEBI Registration no.: INZ 000160131