India’s Pump Powerhouse Hits the Market!
The Oswal Pump IPO is generating strong buzz in the street as it opens for subscription on June 13, 2025. With a fresh issue worth ₹890 crore and an offer for sale of 81 lakh shares, the IPO could offer investors a unique play on India’s booming infrastructure, agriculture, and renewable energy sectors.
Founded in 2003, Oswal Pumps Limited is a diversified pump manufacturer with products across solar, agricultural, industrial, and domestic segments. The company has built a wide distribution network and executed over 26,000 solar pump systems under the PM-KUSUM scheme—a key driver of rural electrification.
It operates a sprawling manufacturing unit in Karnal, Haryana, and exports to 17 countries, showcasing its growing global footprint. Backed by robust financials—revenue nearly tripled in two years and net profit jumped over 10x since FY22—the company now aims to scale further by investing in capacity, repaying debt, and expanding its solar business.
As the Oswal Pump IPO gears up for listing on the BSE and NSE by June 20, all eyes are on the price band and investor response. Will it pump up your portfolio returns?
Let’s dive deeper into the company, its growth potential, and IPO fundamentals.
Oswal Pump IPO Details
The Oswal Pump IPO is a book-built issue comprising a fresh issue of ₹890 crore and an offer for sale of 81,00,000 equity shares of ₹1 each. The company plans to use the proceeds for capex, debt reduction, and expansion into solar manufacturing.
| IPO Details | Information |
|---|---|
| IPO Open Date | June 13, 2025 (Friday) |
| IPO Close Date | June 17, 2025 (Tuesday) |
| Listing Date (Tentative) | June 20, 2025 (Friday) |
| Face Value | ₹1 per share |
| IPO Price Band | ₹584 – ₹614 |
| Issue Type | Book Building |
| Fresh Issue Size | ₹890 crore |
| Offer for Sale (OFS) | 81,00,000 shares or ₹497.34 Cr |
| Total Issue Size | ₹1,387.34 Cr |
| Lot Size | 24 Shares |
| Listing At | BSE, NSE |
| Promoter Holding Pre-Issue | 99.88% |
| Promoter Holding Post-Issue | [To be updated] |
Reservation Split
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIBs) | Up to 50% of the net offer |
| Non-Institutional Investors (NIIs / HNIs) | At least 15% of the net offer |
| Retail Individual Investors (RIIs) | At least 35% of the net offer |
Important Dates – Oswal Pump IPO Timeline
| Event | Date |
|---|---|
| IPO Opening Date | June 13, 2025 (Friday) |
| IPO Closing Date | June 17, 2025 (Tuesday) |
| Cut-off Time for UPI Mandate | 5 PM on June 17, 2025 |
| Basis of Allotment | June 18, 2025 (Wednesday) |
| Initiation of Refunds | June 19, 2025 (Thursday) |
| Credit of Shares to Demat | June 19, 2025 (Thursday) |
| Listing Date (Tentative) | June 20, 2025 (Friday) |
Objects of the Issue – Where the Money Goes
The net proceeds from the Oswal Pump IPO will be used for the following objectives:
- Capital Expenditure for business expansion – ₹89.86 crore
- Investment in Oswal Solar (subsidiary) to set up new manufacturing units – ₹272.76 crore
- Repayment/prepayment of outstanding borrowings – ₹280.00 crore
- Repayment/prepayment of Oswal Solar’s borrowings – ₹31.00 crore
- General Corporate Purposes
Business Model: Vertically Integrated Solar Pump Manufacturer Powering Growth
Oswal Pumps is among India’s fastest-growing vertically integrated solar pump manufacturers, boasting a revenue CAGR of 45.07% between Fiscal 2022 and Fiscal 2024 (Source: 1Lattice Report). The company specializes in manufacturing a comprehensive range of products — solar-powered and grid-connected submersible and monoblock pumps, electric motors (including induction and submersible motors), and solar modules — all sold under the trusted ‘Oswal’ brand.
With over 22 years of experience in engineering, product design, manufacturing, and testing of pumps, Oswal serves diverse sectors:
- Agriculture: Irrigation solutions for fields
- Residential: Garden fountains, water extraction, overhead tank supply, household cleaning
- Commercial: Shopping malls, offices, hotels
- Industrial: Boilers, water treatment, transportation, sewage applications, machinery, and cooling tower systems
Strong Foundation & Strategic Expansion
Founded in 2003 focusing on low-speed monoblock pumps, Oswal gradually expanded its product line to include grid-connected high-speed monoblock pumps, submersible pumps, and electric motors. The launch of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM Kusum) Scheme in 2019 presented a major growth opportunity. This government initiative supports installing solar agriculture pumps to promote energy security for farmers and reduce diesel consumption.
Recognizing this, Oswal expanded into solar-powered agricultural pumps in 2019, quickly becoming a key supplier for the PM Kusum Scheme, as well as the Maharashtra government’s Mukhyamantri Saur Krushi Pump Yojana.
Integrated Turnkey Solar Pumping Systems Provider
Oswal is one of the few fully integrated providers in India offering Turnkey Solar Pumping Systems — a complete package comprising solar pumps, solar modules, mounting structures, pump controllers, and installation services. This integration provides customers a seamless experience, ensuring optimized system performance.
- Since 2021, Oswal has ramped up capabilities, manufacturing solar modules via its wholly-owned subsidiary Oswal Solar Structure Private Limited and leveraging its associate Walso Solar Solution Private Limited for mounting structures and balance-of-system components.
- As of December 31, 2024, Oswal and its associates supplied approximately 38.04% of the 0.61 million solar pumps installed under the PM Kusum Scheme, making it one of the largest suppliers.
Manufacturing Excellence & Sustainable Practices
Oswal operates one of India’s largest single-site pump manufacturing facilities in Karnal, Haryana, covering over 41,000 square meters. The facility has:
- Annual capacity of 1,160 MT stainless steel pumps, 2,366 MT cast iron pumps, 1,314 MT stainless steel motors, and 561 MT cast iron motors
- Advanced machinery including CNC machines, induction furnaces, high-precision grinders, and hydraulic injection molding machines
- ISO certifications for quality (ISO 9001:2015), environmental management (ISO 14001:2015), and occupational health and safety (ISO 45001:2018)
Sustainability is integral to Oswal’s operations — the company recycles scrap metal into pump components, minimizing waste and improving margins.
Innovation-Driven Efficiency & Digital Controls
Oswal’s products integrate electronics to optimize pump efficiency and user control. Their solar pump controllers feature:
- Remote mobile phone operation
- Short circuit, dry run, and anti-theft protection
These innovations enable end-users to monitor and manage performance effectively, enhancing product value and reliability.
Expanding Reach & Customer Support
- Oswal’s distributor network grew from 473 distributors in March 2022 to 925 distributors by December 2024, helping deepen market penetration across India.
- The company exports to 22 countries across Asia-Pacific, Middle East, and North Africa, expanding its global footprint.
- Customer service is a priority, with a team of 171 employees addressing queries and offering toll-free bilingual support (English and Hindi).
- The dedicated sales and marketing team (71 employees) actively participates in campaigns and exhibitions to strengthen brand presence.
Experienced Leadership Driving Growth
Oswal Pumps was founded by Padam Sain Gupta in 2003. His son, Vivek Gupta, the current Chairman and Managing Director, has over 18 years of experience and has played a pivotal role in expanding the product portfolio and setting up the integrated manufacturing facility.
The seasoned leadership team’s expertise has enabled Oswal to capitalize on market opportunities and maintain steady growth.
Financial Performance: Robust Growth & Strong Profitability
Oswal Pumps has demonstrated impressive financial growth and profitability over recent years, driven by increasing demand for solar and electric pumps.
| Financials (₹ Crore) | Dec 31, 2024 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 |
|---|---|---|---|---|
| Total Assets | 1,096.01 | 511.28 | 252.30 | 221.84 |
| Revenue | 1,067.34 | 761.23 | 387.47 | 361.11 |
| Profit After Tax (PAT) | 216.71 | 97.67 | 34.20 | 16.93 |
| Net Worth | 378.80 | 160.17 | 59.97 | 24.57 |
| Reserves & Surplus | 387.96 | 173.42 | 73.22 | 37.82 |
| Total Borrowings | 346.30 | 75.42 | 59.28 | 87.54 |
Key Financial Ratios
- Return on Capital Employed (ROCE): 81.85%
Indicates excellent efficiency in generating profit from its capital base. - Debt-to-Equity Ratio: 0.42
Reflects a conservative capital structure with moderate leverage. - Return on Net Worth (RoNW): 88.73%
Demonstrates high profitability relative to shareholders’ equity. - Profit After Tax (PAT) Margin: 12.83%
Shows solid profit generation from total revenues.
Summary
The company’s revenues have nearly tripled from ₹361.11 crore in FY 2022 to ₹1,067.34 crore by December 2024, with profit after tax growing over 12-fold in the same period. The strong return ratios highlight Oswal Pumps’ efficient use of capital and effective cost management, positioning it well for sustained growth in the expanding solar and agricultural pump market.
IPO Valuation: How Does Oswal Pumps IPO Stack Up Against Peers?
At the upper price band, Oswal Pumps IPO is priced at a Price-to-Earnings (P/E) multiple of:
- Pre-IPO basis: 62.54x
- Post-IPO basis: 24.22x
This places Oswal Pumps somewhere in the middle of its listed peers. Let’s see how it compares:
| Company Name | P/E (x) | RoNW (%) | P/BV Ratio | NAV/share (₹) |
|---|---|---|---|---|
| Oswal Pumps (Post IPO) | 24.22 | 88.73 | Data NA | 16.10 |
| Kirloskar Brothers | 41.94 | 22.30 | 8.51 | 216.47 |
| Shakti Pumps | 66.72 | 24.15 | 12.57 | 68.36 |
| WPIL Ltd | 27.31 | 18.78 | 3.80 | 127.56 |
| KSB Ltd | 66.79 | 17.07 | 10.82 | 74.81 |
| Roto Pumps | 42.08 | 21.95 | 8.52 | 31.03 |
💡 Takeaway:
On a post-issue basis, Oswal Pumps IPO appears more reasonably valued than peers like Shakti Pumps and KSB Ltd, especially considering its industry-leading RoNW of 88.73% and strong CAGR of 45% over the last three years. This indicates a solid earnings base post-issue with potential for re-rating in the medium to long term.
Key Highlights:
- High Return on Net Worth (RoNW):
Oswal Pumps leads the pack with an exceptional RoNW of 88.73%, significantly higher than its peers whose RoNW ranges between 17% and 24%. This indicates superior profitability and efficient capital utilization. - Strong Earnings Per Share (EPS):
With an EPS of ₹9.82, Oswal Pumps shows promising earnings growth, reflecting rapid scaling in a competitive market. - Valuation Multiples:
While the P/E and P/BV ratios for Oswal Pumps are yet to be finalized for the IPO, its current NAV per share stands at ₹16.10. In comparison, established peers have much higher NAVs but trade at premium valuations, reflecting Oswal Pumps’ potential to grow into similar valuation levels as it matures.
Verdict:
The Oswal Pumps IPO offers investors a chance to participate in a fast-growing, vertically integrated pump manufacturer that outperforms its peers in profitability metrics. Given its strong financial foundation, growing market presence, and strategic focus on solar-powered pumps, the IPO valuation is compelling for those looking to invest early in a sector poised for expansion.
Oswal Pumps IPO GMP: What It Means for Investors
What is IPO GMP?
Grey Market Premium (GMP) is the price at which an IPO share is trading unofficially before its official listing on the stock exchanges. It helps investors gauge the expected listing performance of an IPO based on market demand and sentiment. While GMP is not an official indicator and carries no regulatory guarantee, it is widely used to assess listing expectations and investor interest.
The Grey Market Premium (GMP) is currently ₹43 for Oswal Pumps IPO. That means buyers in the unofficial market are willing to pay ₹43 over the upper price band of ₹614.
📈 Estimated Listing Price = ₹614 (Upper Band) + ₹43 (GMP) = ₹657
💰 Estimated Listing Gain = ₹43 per share → ~7% potential upside
How to Use GMP:
- To Gauge Sentiment: A rising GMP usually signals strong investor interest.
- To Set Listing Expectations: Helps estimate potential listing gains or losses.
- For Short-Term Decisions: Useful for those considering listing day gains, but not a substitute for fundamental analysis.
⚠️ Note: GMP is unofficial and speculative. Use it as an additional insight tool—not the only basis for investment.
Oswal Pumps IPO: Listing Strategy & Investment Outlook
Short-Term View (Listing Gains Perspective)
With the current Grey Market Premium (GMP) at ₹43, the IPO is expected to list at a moderate premium, depending on the final issue price. The rising GMP trend indicates healthy interest in the grey market, suggesting a potentially small listing debut.
Ideal for:
- Investors looking for quick small listing gains.
- Traders who prefer to exit on the day of listing or within the first few sessions.
Risks:
- GMPs are unofficial and volatile—a fall before the listing could erode the expected premium.
- Market sentiment on listing day (global cues, sector news) can override GMP expectations.
Strategy: Apply with the aim to book profits at 10-20% premium, but stay alert to market mood and exit quickly if momentum weakens post-listing.
Long-Term View (Fundamental Investment Perspective)
Oswal Pumps is India’s fastest-growing vertically integrated solar pump manufacturer, with:
- 45.07% revenue CAGR (FY22–FY24)
- Deep involvement in the PM-KUSUM scheme, with ~38% market share in installed solar agri pumps
- Fully backward-integrated model—offering pumps, motors, modules, controllers, and even installation
- Solid return ratios: RoNW of 88.73% and ROCE of 81.85%
- Strong distribution network & export presence in 22 countries
However, the IPO valuation will become clearer after the price band is announced. Compared to peers like Shakti Pumps and Kirloskar Brothers, Oswal’s profitability and asset growth are impressive, but its scale is smaller.
Ideal for:
- Investors seeking exposure to green energy + rural infrastructure themes
- Those who believe in long-term government-backed rural energy programs
Risks:
- Heavy revenue dependence on government schemes like PM-KUSUM
- Margins may fluctuate based on subsidy disbursements and execution cycles
- Scale and brand are still building compared to larger listed peers
Strategy:
- Hold for 2–3 years to ride the rural solar push, export expansion, and possible capacity utilization boost.
- Reassess position based on order book visibility and quarterly earnings post-listing.
Final Call
| Horizon | Verdict |
|---|---|
| Short Term | 💼 Apply for listing gains (watch GMP & market cues) |
| Long Term | 🌞 Consider as a growth bet on rural solar + Make-in-India |
Should You Invest in the Oswal Pumps IPO?
Oswal Pumps IPO brings a rare blend of high-growth solar-tech exposure and traditional manufacturing legacy. With an 88.73% RoNW and 81.85% ROCE, the company is aggressively scaling up on the back of government-backed rural solarisation schemes like PM Kusum. While valuations compared to peers remain to be confirmed, the robust growth (CAGR of 45% in revenue over FY22–24), expanding distribution, and backward integration give long-term investors reasons to stay interested.
However, with a relatively modest GMP and no confirmed IPO pricing yet, short-term investors may need to watch GMP trends closely. The IPO seems well-positioned for both momentum traders eyeing listing gains and strategic investors looking to play the green energy capex boom in rural India.
Oswal Pumps IPO – Summary for Investors
| Investor Type | Ideal Strategy | Key Reason to Apply | Exit Timeline | Risk Level |
|---|---|---|---|---|
| Retail (Short-Term) | Apply for listing gains | GMP uptrend & expected premium listing | On listing day or 1–2 weeks | Moderate |
| Retail (Long-Term) | Apply & hold | Strong fundamentals & govt scheme tailwinds | 2–3 years | Moderate-High |
| HNI/Experienced Trader | Apply selectively | Volatile GMP but attractive RoNW/ROCE | Partial exit on listing, hold balance | Medium |
| Conservative Investor | Wait & watch post listing | Valuation clarity, quarterly results | 1–2 quarters post listing | Low |
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FAQs on Oswal Pumps IPO
1. What is the Oswal Pumps IPO all about?
The IPO is a public issue by Oswal Pumps Limited, a leading manufacturer of solar and electric pumps, aiming to raise capital for expansion and working capital.
2. What is the issue size of the Oswal Pumps IPO?
The total issue size is ₹[To Be Updated], comprising only a fresh issue component.
3. What are the opening and closing dates for the Oswal Pumps IPO?
The IPO opens on June 19, 2025, and closes on June 21, 2025.
4. What is the price band and lot size for Oswal Pumps IPO?
The price band and lot size have not been announced yet. Investors should stay tuned for the official RHP.
5. Who are the lead managers of the Oswal Pumps IPO?
Interactive Financial Services Ltd is the Book Running Lead Manager for this IPO.
6. Is there any reservation for different investor categories?
Yes. 50% is reserved for retail investors, 45% for other investors, and 5% for market makers.
7. What is the Grey Market Premium (GMP) of Oswal Pumps IPO?
As of June 9, 2025, the GMP is ₹33, indicating positive listing expectations.
8. How does Oswal Pumps generate revenue?
Oswal Pumps earns primarily through manufacturing and supplying solar-powered and electric pumps, with significant revenue from government schemes like PM Kusum.
9. Is Oswal Pumps a profitable company?
Yes. The company posted a PAT of ₹216.71 crore for the nine months ending December 2024, with strong profitability ratios.
10. What are the long-term growth triggers for Oswal Pumps?
Key drivers include rising demand for solar-powered irrigation, government schemes, backward integration, export expansion, and strong domestic distribution.
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