Oswal Pumps Ltd’s ₹1,387-crore initial public offering concluded its first day with 42 per cent subscription on June 13, 2025, showing improved momentum from the morning’s lukewarm response. The issue, priced between ₹584-614 per share, will remain open until June 17, 2025.

Non-institutional investors led the charge with 79 per cent subscription, while retail individual investors subscribed to 45 per cent of their allocated portion. Qualified institutional buyers remained cautious with only 8 per cent subscription by market close.

Prior to the public offering, Oswal Pumps successfully raised ₹416.20 crore from anchor investors on June 12, 2025, allocating 67.78 lakh equity shares at ₹614 per share. Marquee institutions including Societe Generale, BNP Paribas, Smallcap World Fund Inc, ICICI Prudential, Aditya Birla Sunlife, Kotak Mahindra MF, and Quant MF participated in the anchor round.

The solar pump manufacturer, which has grown at 45 per cent CAGR between fiscal 2022-2024, aims to raise ₹890 crore through fresh equity and offer for sale of 81 lakh shares by promoter Vivek Gupta. The company’s financial performance has been robust, with revenue from operations increasing by 97 per cent from ₹385 crore in fiscal 2023 to ₹759 crore in fiscal 2024. Net profit surged from ₹34.19 crore in fiscal 2023 to ₹97.66 crore in fiscal 2024. For the nine months ended December 2024, revenue stood at ₹1,066 crore with net profit of ₹217 crore.

Incorporated in 2003, Oswal Pumps started with manufacturing low-speed monoblock pumps and has expanded to manufacture grid-connected high-speed monoblock pumps, grid-connected submersible pumps, and electric motors. The company manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors, as well as solar modules under the ‘Oswal’ brand.

As of December 2024, Oswal Pumps had executed orders for 38,132 turnkey solar pumping systems under the PM-KUSUM scheme across states including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra. The company operates manufacturing facilities in Karnal, Haryana, covering 41,076 square meters, which is described as one of India’s largest single-site facilities for manufacturing pumps. It also operates a solar module manufacturing facility through wholly-owned subsidiary Oswal Solar Structure Private Limited with an annual installed capacity of 570 MW. The company has expanded its distributor network to 925 as of December 2024.

Both Mehta Equities and Anand Rathi have recommended subscribing to the IPO for long-term investment. Mehta Equities noted the company’s deep vertical integration and cost efficiency, stating that the issue is asking for a reasonable PE of 24.2x based on annualized FY2025 earnings, compared to industry peers trading at an average of 42x. Anand Rathi highlighted the company’s position as one of the largest suppliers under the PM-KUSUM scheme and its fastest-growing status in the solar pump manufacturing space.

The proceeds from the fresh issue will be utilized for funding capital expenditure of ₹89.86 crore, investment of ₹272.76 crore in subsidiary Oswal Solar for setting up new manufacturing units at Karnal, ₹280 crore for repayment of outstanding borrowings, ₹31 crore for investment in Oswal Solar for debt repayment, and general corporate purposes. The company serves diverse sectors including agricultural for irrigation, residential for water supply and garden maintenance, commercial premises, and industrial applications.

The IPO is managed by IIFL Capital, Axis Capital, CLSA India, JM Financials, and Nuvama Wealth, with listing scheduled for June 20, 2025.

Published on June 13, 2025