The Karnal-based manufacturer of water and solar pumping systems, Oswal Pumps Ltd, is set to open its ₹1,387 crore IPO from June 13 to June 17, 2025. This includes a fresh issue of ₹890 crore and an Offer for Sale (OFS) of ₹497.34 crore by promoter Vivek Gupta. The shares are tentatively scheduled to list on the NSE and BSE on June 20, 2025.
Key IPO Details
- Price Band: ₹584 – ₹614 per share
- Lot Size: 24 shares (~₹14,016 at upper band)
- Allocation: 50% QIB, ≥35% Retail, ≥15% NII
- Issue Size: 2.26 crore shares (1.45 crore fresh, 0.81 crore OFS)
- Listing Timeline: Allotment on June 18; refunds and credits on June 19; listing on June 20
Business Snapshot
- Founded: 2003, Headquarters in Karnal, Haryana
- Products: Solar & grid-connected pumps, electric motors, solar modules
- Ops: Over 38,132 solar pumping systems installed under PM-KUSUM as of Dec 2024
- FY24 Performance: Revenue ₹758.5 crore (+97% YoY); PAT ₹97.7 crore vs ₹34 crore in FY23
- 9M FY25 Performance: Revenue ₹1,065.7 crore; PAT ₹216.7 crore
Fund Allocation
Proceeds will be used for:
- Capital expenditure (~₹89.9 crore)
- Building solar pump manufacturing unit via subsidiary Oswal Solar (~₹272.8 crore)
- Debt repayment (
₹280 crore) and subsidiary debt (₹31 crore) - General corporate purposes
Peer Benchmarking
Industry peers’ P/E multiples:
- Kirloskar Brothers ~41.9×
- Shakti Pumps ~66.7×
- WPIL ~27.3×
- KSB ~66.8×
- Roto Pumps ~42.1×
GMP & Listing Outlook
Grey Market Premium (GMP) is currently in the ₹67 range as of June 11—indicative of ~11% potential listing gains (₹581 + ₹67 = ₹681) . Earlier reports had pegged GMP around ₹50 (~8% upside).
What GMP indicates:
- Reflects strong tentational demand
- Forecasts potential listing price*
- Serves as a sentiment barometer, though not always accurate
*Listing gains could exceed GMP if market conditions remain upbeat, but investors should note that GMP forecasts are not guarantees.
Growth Drivers and Investment Rationale
- Solar Push: Alignment with PM-KUSUM bolsters rural and agricultural utility solutions.
- CAGR Potential: The solar pump market is expected to grow ~11% through FY30 vs ~8.4% for general pumps—an enduring tailwind.
- Strong Financials: Revenue and profitability have doubled in recent years, with margins stabilized and debt being reduced.
- Strategic Funding Use: Focused investment in capacity expansion and debt reduction enhances operations and balance sheet.
- Market Resilience: Positive sentiment in infrastructure and green energy sectors enhances market reception.
Risks to Watch
- Subscription risk: Any weak IPO subscription may dampen GMP and listing performance.
- Execution risk: Delays in plant setup or KUSUM projects could affect business trajectory.
- Valuation risk: Though GMP signals ~10% listing upside, initial multiples wick up quickly.
- External shocks: Macro headwinds, raw material inflation, or interest rate shifts could weigh adversely.
Conclusion – What Investors Should Know
With a compelling grey market premium of ₹67, Oswal Pumps is positioned for a strong debut, potentially listing around ₹681, signaling an impressive one-day gain of ~11%. The IPO’s framing across strong fundamentals, expansion strategies, and green energy alignment makes it attractive—provided investors manage subscription and valuation risks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions in the stock market.
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