The Indian stock market is abuzz with the launch of another promising IPO — Oswal Pumps IPO, which opened for subscription on June 13, 2025, and will close on June 17, 2025. With a booming solar pump business, explosive revenue growth, and a strong anchor book, Oswal Pumps is drawing significant investor interest. But is this IPO worth subscribing to? Let’s dive deep into the company’s financials, growth story, and key risks to help you decide.
Oswal Pumps IPO: Key Details at a Glance
| Detail | Information |
|---|---|
| IPO Open/Close Dates | June 13 – June 17, 2025 |
| Price Band | ₹584 – ₹614 per share |
| Lot Size | 24 shares |
| Minimum Investment | ₹14,016 (at lower price band) |
| Issue Size | ₹1,387.34 crore |
| Fresh Issue | ₹890 crore |
| Offer for Sale (OFS) | ₹497.34 crore |
| Face Value | ₹1 per share |
| Listing Date | Likely June 20, 2025 |
| Exchanges | BSE and NSE |
| Registrar | MUFG Intime India Pvt Ltd |
| Lead Managers | IIFL, Axis Capital, CLSA, JM Financial, Nuvama |
| Grey Market Premium (GMP) | ₹68–₹88 per share (as of June 13, 2025) |
The IPO is drawing buzz thanks to a GMP indicating an 11% potential listing gain, suggesting strong investor demand even before listing.
Company Overview: Oswal Pumps at the Forefront of Solar Innovation
Founded as a traditional pump manufacturer, Oswal Pumps has transformed into a modern, solar-focused enterprise. It is a major supplier of solar-powered and grid-connected submersible and monoblock pumps, along with electric motors and solar modules. The company has a strong footprint in India’s agricultural heartlands and benefits significantly from government schemes like PM-KUSUM.
A standout feature is its rapid growth: the company’s revenue grew at a CAGR of 45.07% between FY22 and FY24, reflecting surging demand in the clean energy and agri-pump segment.
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Financials: Explosive Growth and Strong Margins
Oswal Pumps has shown a rare blend of high growth, profitability, and capital efficiency.
Key Financial Highlights:
| Metric | FY22 | FY24 | 9M FY25 |
|---|---|---|---|
| Revenue (₹ crore) | 360.38 | 758.57 | 1,065.67 |
| Net Profit (₹ crore) | 16.9 | 97.67 | 216.71 |
| EBITDA Margin (%) | 10.7 | 19.8 | 30.1 |
| RoE (%) | 58.88 | 88.73 | — |
- Return on Equity (RoE) at 88.73% in FY24 is phenomenal, far outpacing listed peers like Shakti Pumps (24.15%), Kirloskar Brothers (22.30%), and KSB (17.09%).
- Net profit more than quintupled in two years, showcasing robust bottom-line expansion.
- EBITDA margin improved significantly, indicating stronger operational efficiency.
Such numbers place Oswal Pumps in a unique position among mid-cap industrial companies.
IPO Valuation and Peer Comparison
The Oswal Pumps IPO is priced at a P/E ratio of up to 24, which looks attractive when compared with peer group averages ranging from 28 to 60.
While Oswal is smaller in revenue than giants like Kirloskar Brothers and KSB, it aligns well with fast-growing mid-sized players like WPIL and Shakti Pumps. Thanks to its improving margins and lean operations, the valuation appears relatively modest, offering headroom for post-listing gains.
Use of Proceeds: A Growth-Centric Allocation
The ₹890 crore raised from the fresh issue will be deployed strategically:
- ₹280 crore: Repayment of borrowings
- ₹272.75 crore: New unit for subsidiary Oswal Solar
- ₹89.86 crore: Capital expenditure
- ₹31 crore: Repayment of Oswal Solar loans
- ₹216.39 crore: General corporate purposes
This reflects a clear focus on deleveraging and capacity expansion, which should support continued revenue growth and margin improvement.
Growth Drivers: Betting Big on Solar and Agriculture
Oswal Pumps’ future seems well-anchored in India’s growing demand for renewable and efficient irrigation solutions.
Key Tailwinds:
- Strong positioning under PM-KUSUM, India’s flagship solar pump scheme.
- Network expansion from 473 distributors in March 2022 to 925 by December 2024, aiding deeper market penetration.
- Government’s continued thrust on solar electrification and rural development.
Its order book remains strong, and capacity expansion through Oswal Pumps IPO funds will allow Oswal to scale efficiently.
Risks: What Could Go Wrong?
Despite the positives, investors should keep a few risks in mind:
- Dependence on Government Schemes: A significant portion of revenue is tied to the PM-KUSUM scheme. Any policy change could affect future orders.
- Geographic Concentration: Business is currently concentrated in a few Indian states, increasing regional risk.
- Working Capital Intensity: Rising trade receivables suggest Oswal will need to manage cash flows carefully to avoid strain.
These factors don’t dim the growth story but do warrant vigilant monitoring post-listing.
Subscription Status (Day 1)
| Category | Subscription (x) |
|---|---|
| Qualified Institutional Buyers (QIB) | 0.00 |
| Non-Institutional Investors (NII) | 0.08 |
| Retail Investors | 0.06 |
| Total | 0.05 |
While the Day 1 numbers are modest, this is typical of IPOs with a 5-day window. Subscriptions usually ramp up towards the final two days, especially after anchor interest and market sentiment firm up.
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Final Verdict: Should You Subscribe to the Oswal Pumps IPO?
The Oswal Pumps IPO presents a compelling case for long-term and listing gains, given its:
- Explosive financial growth
- High RoE and EBITDA margins
- Attractive P/E valuation
- Clear growth roadmap with capex and debt reduction
- Strong demand under India’s renewable and agri-pump mission
However, investors should remain mindful of its exposure to government policies and regional customer concentration.
If you’re looking for a high-growth industrial play with clean energy credentials and robust financials, Oswal Pumps IPO could be the next big opportunity on D-Street.