Oswal seeks to redirect unused IPO funds to a solar-cell factory
Oswal Pumps plans a 1.2-gigawatt solar-cell plant for its subsidiary’s own module lines, with production targeted for April 2028. The proposed 4.56 billion-rupee investment combines debt with unused IPO proceeds previously assigned to other manufacturing projects. The capital reallocation requires shareholder and regulatory approvals. Management expects the plant to cover most of the subsidiary’s cell needs.
Economics & Markets··Midday
A cell factory would supply the group’s own modules
Oswal Pumps announced a plan for a 1.2-gigawatt solar-cell facility approved by the board of its wholly owned Oswal Solar Energy subsidiary. Commercial production is targeted for April 2028. The investment would move unused IPO proceeds towards a cell factory supplying the subsidiary’s own solar-module lines. The parent board approved a change in the purposes and timetable for the proceeds, subject to shareholder and regulatory approvals.[1], [2]
The facility would use TOPCon technology, with all output intended for internal module production. Management expects it to meet about 75 per cent of the subsidiary’s total cell needs; the rest would continue to come from outside suppliers in the near term.[1], [2]
Debt and unused IPO proceeds would finance construction
Estimated project cost is 4.56 billion rupees. The proposed financing includes 2.96 billion in debt and 1.5985 billion from unused IPO proceeds. The available proceeds assigned to the relevant manufacturing projects total 1.6304 billion rupees. Those funds had been set aside for an aluminium-frame facility, the remaining 300 megawatts of an EVA encapsulant facility and the remaining 500 megawatts of a solar-module plant. Oswal now proposes deploying the IPO funds for the cell factory by financial year 2028.[1], [2]
The proposed borrowing has no disclosed lender, sanction terms or borrowing cost. Shareholder and regulatory approvals, securing the debt, equipment orders and commissioning toward April 2028 are separate stages of the plan. Unused IPO funds for other company capital expenditure and general corporate purposes remain outside this reallocation.[2]
The company sets out its supply choice
Management described its approximately 570-megawatt module line and the 1-gigawatt line under construction as sufficient for current needs. It would retain 1.2 gigawatts of EVA capacity. The company said it had examined long-term domestic cell supply contracts but found the pricing and upfront security deposits inconsistent with its working-capital approach. It argues that internal cell production will strengthen domestic supply and quality control for government-linked programmes. Procurement costs and profitability improvements remain management’s forecasts.[1], [2]
The factory is planned for Karnal in Haryana. Consolidated operating margin was 15.7 per cent in the first quarter of financial year 2027, compared with 27.4 per cent a year earlier. EVA is an encapsulant: it protects the solar cells inside a module. The retained encapsulant production and module lines serve different stages from the proposed cell plant.[2]
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