The IPO comprises a fresh issue of Rs 890 crore and an offer for sale (OFS) worth Rs 497.34 crore by promoter Vivek Gupta. It will close on June 17, with shares tentatively scheduled to list on June 20 on both BSE and NSE.
IPO structure and key dates
The public issue includes a fresh issue of 1.45 crore shares aggregating to Rs 890 crore, and an offer for sale of 0.81 crore shares totaling Rs 497.34 crore by the promoter. According to the draft red herring prospectus (DRHP), “the company may consider a pre-IPO placement of specified securities; if undertaken, the size of the fresh issue would be reduced accordingly.”The IPO will open for anchor investor bidding on June 12, and allotment is expected to be finalized by Wednesday, June 18.
Price band and minimum investment
The IPO price band has been fixed at Rs 584–614 per equity share of face value Re 1 each.
The minimum bid lot is 24 shares, translating into a base investment of Rs 14,016 for retail investors. However, market participants are recommending investors to bid at the cutoff price, raising the minimum to Rs 14,736, in anticipation of heavy oversubscription.
For non-institutional investors, the minimum lot size is significantly higher. For small NIIs (sNII), the minimum application is 14 lots (336 shares) requiring an investment of Rs 2,06,304, and for big NIIs (bNII), the bar is 68 lots (1,632 shares) or Rs 10,02,048.
Allocation structure
As per regulatory guidelines, not more than 50% of the net offer will be allocated to qualified institutional buyers (QIBs), not less than 15% to non-institutional investors, and at least 35% to retail individual investors.
The issue is being managed by IIFL Capital, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management as the book-running lead managers. MUFG Intime India is the registrar to the issue.
Company overview
Founded in 2003, Oswal Pumps has built a diversified portfolio with a presence across pumps, motors, pipes, and solar water pumping systems. Operating through subsidiaries like Oswal Solar Structure Pvt Ltd and Oswal Green Industries Pvt Ltd, the company is backed by a promoter group that includes Vivek Gupta, Amulya Gupta, and Shivam Gupta, along with three corporate promoter entities.
“The IPO will follow the book-building route and is proposed to be listed on BSE and NSE,” the company stated in its DRHP.
Use of proceeds
Proceeds from the fresh issue will be used to fund corporate objectives, including growth initiatives laid out in the offer documents, while the promoter will receive proceeds from the OFS component.
Also read | IPO calendar: 4 new issues, 1 listing lined up in a busy mid-June week
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