look news india
New Delhi, September 18 (HS). Oswal Pumps Limited has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
Haryana-based Oswal Pumps Ltd on Tuesday filed its DRHP for an IPO, according to a document filed with capital market regulator Sebi. According to the draft documents filed by the company, the IPO is a combination of a fresh issue of up to Rs 1,000 crore with a face value of Rs 1 per equity share and an offer for sale (OFS) of up to 11.31 million equity shares by Vivek Gupta.
In a statement, the company said that this offer is being made through the book-building process, in which not more than 50 per cent of the offer will be available for allocation to qualified institutional buyers on a proportionate basis. At the same time, not more than 15 per cent of the offer will be available for allocation to non-institutional bidders, while more than 35 per cent of the offer will be available for allocation to retail individual bidders.
Oswal Pumps Ltd said the proceeds from the fresh issue will be used for funding certain capital expenditure of the company, investment in the form of debt or equity in wholly-owned subsidiary Oswal Solar, setting up new manufacturing units at Karnal, Haryana, repayment of debt and general company functioning. The company started its operations in the year 2003 by manufacturing low speed monoblock pumps and over the years it has expanded its operations to manufacture grid connected high-speed monoblock pumps, grid connected submersible pumps and electric motors.
It is noteworthy that Haryana-based company Oswal Pumps Limited manufactures solar-powered and grid-connected submersible and monoblock pumps, induction and submersible motors as well as electric motors with solar modules. It sells under the 'Oswal' brand. It has an extensive network of distributors, which has increased from 473 as of March 31, 2022 to 636 by the end of March 2024 this year.