Pre-IPO Momentum Builds: Oswal Pumps Raises ₹416 Crore from Anchor Investors

Pre-IPO Momentum Builds: Oswal Pumps Raises ₹416 Crore from Anchor Investors

The Haryana-based pump manufacturer finalizes anchor placements as it prepares for its IPO, aiming to raise ₹1,387 crore through fresh issue and OFS.

₹416 Crore Anchor Investment Powers Oswal Pumps’ IPO Journey

Haryana-based water pump manufacturer Oswal Pumps has successfully raised ₹416.2 crore from prominent anchor investors just before launching its highly anticipated initial public offering (IPO). This key milestone comes as the company gears up to open its IPO for public subscription starting June 13, 2025.

An official release from the company revealed that 67,78,533 shares were issued to anchors at ₹614 per unit, gearing up for the IPO.

Major Mutual Fund Participation Highlights Confidence

Among the total shares allocated to anchor investors, approximately 29,62,821 shares—representing 43.71% of the total anchor portion—were taken up by 11 domestic mutual fund houses operating through 15 different schemes. This significant level of participation from well-known mutual fund players underscores the strong confidence institutional investors have in Oswal Pumps’ business prospects and growth trajectory.

The anchor book also saw involvement from several renowned global and domestic institutions, adding weight to the credibility and attractiveness of this upcoming offering.

IPO Details: Fresh Issue and Offer for Sale

This IPO package blends a ₹890 crore fresh equity infusion with promoter Vivek Gupta’s exit of 81 lakh shares. The issue is slated to open on June 13, 2025, and will remain open for subscription until June 17, 2025.

Oswal Pumps has set the price band for its IPO in the range of ₹584 to ₹614 per share. At the ceiling of the proposed price range, the IPO has the potential to raise approximately ₹1,387.34 crore in total proceeds. This infusion of capital is expected to support the company’s long-term business goals, including expansion and strengthening its market footprint.

Prominent Institutions Lead the Offering

A group of prominent financial institutions—comprising IIFL Capital, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth—are steering the IPO as lead managers. MUFG Intime India has been appointed as the official registrar to the issue, responsible for managing investor records and allotments.

With a carefully structured offering process, Oswal Pumps aims to attract a diversified pool of investors ranging from large institutional participants to retail investors.

Investor Bidding Structure and Lot Size

For retail participants, the IPO will be accessible through a minimum bid of 24 equity shares, with further investments to be made in multiples of 24 thereafter. The offering follows the standard book-building process, ensuring fair price discovery and balanced investor allocation.

As per the distribution framework, no more than half of the net issue is designated for institutional investors, with at least 15% reserved for affluent individual bidders and a minimum of 35% specifically allocated for retail participants.

This structure ensures a wide participation base, offering both seasoned institutions and everyday retail investors an opportunity to participate in the company’s growth story.

Market Outlook and Strategic Use of Funds

Oswal Pumps plans to deploy the proceeds from its fresh issue primarily toward funding growth initiatives, business expansion, and improving operational efficiency. Additionally, a portion of the funds may be allocated for debt reduction and other general corporate purposes, as outlined in its regulatory documents.

As one of India’s leading manufacturers of pumps and related solutions, Oswal Pumps has built a reputation for quality and innovation. By leveraging the fresh infusion of capital from this IPO, the company aims to further strengthen its competitive edge in domestic and international markets.

Final Thoughts

Oswal Pumps’ pre-IPO success with anchor investors signals a robust start to its journey into the public markets. The ₹416 crore already secured reflects strong institutional backing, while the planned ₹1,387 crore total issue highlights the company’s ambitious growth aspirations.

With a diversified investor structure, strategic use of proceeds, and a growing market for high-quality pump solutions, Oswal Pumps is positioning itself as a formidable player in its industry. The positive response from mutual funds and institutional investors suggests high expectations for the IPO’s overall performance once it opens for public subscription.

For investors seeking opportunities in India’s manufacturing sector, especially within infrastructure-related industries, Oswal Pumps’ offering may present a compelling option for both short-term market activity and long-term value creation.

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