Oswal Pumps Limited, a renowned player in the Indian pump manufacturing industry, is coming up with its Initial Public Offering (IPO). The IPO will open on June 13, 2025 and close on June 17, 2025. This IPO Review provides detailed analysis covering IPO date, issue details, price band, financials, objectives, and would provide a direction to you whether to invest or avoid.
About Oswal Pumps Limited
Incorporated in 2003, Oswal Pumps Limited is engaged in manufacturing and distributing pumps and associated equipment. The company caters to domestic, agricultural, and industrial needs with a wide product portfolio including solar pumps, submersible pumps, electric motors, and winding wires. It operates a major facility in Karnal, Haryana and has grown its distributor network from 473 in FY22 to 636 in FY24. Oswal has exported to 17 countries and employs 164 people as of March 2024.
Competitive Strengths
- Strong foothold in solar pumping systems under PM-KUSUM scheme
- Diversified product range catering to multiple sectors
- Robust distribution and export network
- Scalable infrastructure with over 41,000 sqm of manufacturing area
- Consistent growth in revenue and profitability
Oswal Pumps IPO Issue Details
- IPO Date: June 13 to June 17, 2025
- IPO Size: ₹1,387.34 crore
- Fresh Issue: ₹890 crore
- Offer for Sale: ₹497.34 crore (8.1 million shares)
- Price Band: ₹584 to ₹614 per share
- Lot Size: 24 shares
- Listing: BSE and NSE
Company Financials
| Particulars | FY22 (₹ Cr) | FY23 (₹ Cr) | FY24 (₹ Cr) | 9M FY25 (₹ Cr) |
|---|---|---|---|---|
| Revenue | 361.11 | 387.47 | 761.23 | 1,067.34 |
| PAT | 16.93 | 34.20 | 97.67 | 216.71 |
| Net Worth | 24.57 | 59.97 | 160.17 | 378.80 |
| Total Assets | 221.84 | 252.30 | 511.28 | 1,096.01 |
Objects of the IPO
- Capital expenditure for plant expansion: ₹89.86 Cr
- Investment in subsidiary Oswal Solar: ₹272.76 Cr
- Debt repayment: ₹280 Cr
- Repayment of subsidiary debt: ₹31 Cr
- General corporate purposes
P/E Ratio Comparison
Valuation is a key factor investors consider when deciding whether an IPO is good or bad for investment.
- Post-issue EPS: ₹25.35
- P/E Ratio: 24.22x
- Industry Peers: Shakti Pumps (58x), Roto Pumps (42x), KSB Limited (46x)
- Conclusion: Oswal’s valuation appears attractive compared to industry averages
Reasons to Invest in Oswal Pumps IPO
- Attractive valuation with strong financial growth
- Government focus on solar pumps (PM-KUSUM) offers long-term tailwinds
- Scalable infrastructure and established brand
- Debt reduction will improve balance sheet metrics
Risk Factors
- Dependence on PM-KUSUM scheme for solar pump orders
- Highly competitive industry
- Working capital-intensive business
- Any delay in project expansion could affect growth plans
How to Apply for Oswal Pumps IPO
- UPI and ASBA-supported applications via your bank or broker platform
- Minimum investment: ₹14,736 (24 shares at cut-off price)
- Ensure mandate approval by 5 PM on June 17, 2025
Oswal Pumps IPO Grey Market Premium (GMP)
As of now, the GMP for Oswal Pumps IPO is not officially available. Stay tuned for updates closer to the IPO date.
Oswal Pumps IPO – Should You Subscribe or Not?
Oswal Pumps IPO offers a good opportunity for long-term investors, given its financial growth, scalable operations, and strategic alignment with renewable energy initiatives. At a P/E of 24.22x, it is reasonably priced. Risk-averse investors should weigh sector cyclicality and government dependency before investing.
Frequently Asked Questions (FAQs)
- What is Oswal Pumps IPO Date?
The IPO opens on June 13 and closes on June 17, 2025. - What is the Oswal Pumps IPO Price Band?
The price band is ₹584 to ₹614 per equity share. - What is the minimum lot size for Oswal Pumps IPO?
One lot consists of 24 shares, requiring a minimum investment of ₹14,736. - What is the GMP for Oswal Pumps IPO?
Grey Market Premium (GMP) is currently not available. - Is Oswal Pumps IPO worth investing in?
With strong financials, reasonable valuation, and growth outlook, Oswal Pumps IPO is worth considering for long-term investment.
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