Green Horizons: Oswal Pumps' ₹270 Cr Push into Solar

Haryana-based Oswal Pumps plans to invest Rs 270 crore from its Rs 1,387 crore Initial Public Offering (IPO) to expand its solar module manufacturing and strengthen backward integration efforts. The investment will be made through its wholly owned subsidiary, Oswal Solar Structures, which currently operates a 600 MW solar module facility focused on turnkey solar pumping systems.

Chairman and Managing Director Vivek Gupta said the company will allocate Rs 360 crore from the IPO for capital expenditure—Rs 90 crore to upgrade its motor manufacturing plant in Karnal, and Rs 270 crore to scale its solar operations. This includes Rs 156 crore to increase solar module capacity to 2,100 MW, Rs 43 crore to establish an aluminum extrusion frame plant, and Rs 27 crore for EVA encapsulant material production. Oswal is also evaluating in-house manufacturing of on-grid inverters and junction box back sheets.

A major revenue driver for the company is the PM Kusum Scheme, which promotes solar pump adoption in off-grid rural areas. The IPO, opening June 13, includes a fresh issue of Rs 890 crore and an offer-for-sale of Rs 497 crore by promoter Vivek Gupta.

News by Rahul Yelligetti.