Oswal Pumps Limited, founded in 2003, is a fast-growing Indian company engaged in the manufacturing of solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, and electric panels, among other products. The company boasts a state-of-the-art integrated plant, operated by experienced engineers and technicians, enabling full backward integration and diverse product capabilities.

Oswal Pumps IPO Details

The Oswal Pumps IPO is a Book Built Issue aggregating to ₹ 1,387.34 Crores, comprising:

• A Fresh Issue of 144.95 lakh equity shares worth ₹ 890.00 Crores

• An Offer for Sale (OFS) of 81.00 lakh equity shares totaling ₹ 497.34 Crores

The IPO opened on June 13, 2025, and closed on June 17, 2025. The IPO price band is set between ₹ 584 to ₹ 614 per equity share. At the upper price band of ₹ 614, the expected market capitalization of the company will be approximately ₹ 6,998.21 Crores.

The lot size is 24 shares, and the minimum application for retail investors is ₹ 14,736. For HNIs, the minimum is 14 lots (336 shares), translating to an investment of ₹ 2,06,304.

The IPO allotment date is scheduled for Wednesday, June 18, 2025, and the tentative listing date on the NSE and BSE is Friday, June 20, 2025.

Book Running Lead Managers and Registrar

The IPO is managed by leading investment bankers including:

• IIFL Capital Services Limited

• Axis Capital Limited

• CLSA India Private Limited

• JM Financial Limited

• Nuvama Wealth Management Limited

MUFG Intime India Private Limited serves as the registrar for the IPO.

IPO Grey Market Premium (GMP) and Expected Listing Gains

As of June 9, 2025, the Grey Market Premium (GMP) for Oswal Pumps IPO stood at ₹50, indicating an expected listing price of ₹664, which is 8.14% higher than the issue price.

Note: GMP is unofficial and operates in the unregulated grey market. It reflects informal demand and should not be considered an official or guaranteed valuation indicator.

Subscription Status and Anchor Investor Participation

As of 07:00 PM on June 17, 2025, the Oswal Pumps IPO was subscribed 34.42 times, confirming robust investor interest.

Earlier, on June 12, 2025, Oswal Pumps raised ₹416.20 Crores from Anchor Investors by allocating 67,78,533 equity shares at the upper price band of ₹614 per share. The participation of institutional investors bolsters confidence in the IPO.

Financial Performance Overview

Oswal Pumps has showcased strong growth momentum in recent years:

• Revenue from Operations:

  • FY2022: ₹3,611.08 Million

  • FY2023: ₹3,874.72 Million

  • FY2024: ₹7,612.34 Million

  • 9MFY25 (Dec 31, 2024): ₹10,673.44 Million

• EBITDA:

  • FY2022: ₹392.47 Million

  • FY2023: ₹602.55 Million

  • FY2024: ₹1,527.87 Million

  • 9MFY25: ₹3,226.83 Million

• Profit After Tax (PAT):

  • FY2022: ₹169.29 Million

  • FY2023: ₹341.99 Million

  • FY2024: ₹976.65 Million

  • 9MFY25: ₹2,157.95 Million

These results demonstrate an exponential trajectory in both top-line and bottom-line performance, reflecting the company’s robust operational scale-up and market demand.

Valuation and Key Ratios

• Pre-Issue EPS (FY24): ₹9.82

• Post-Issue EPS (FY24): ₹8.57

• Pre-Issue P/E Ratio: 62.53x

• Post-Issue P/E Ratio: 71.66x

• Industry Average P/E: 49x

• ROCE (FY24): 81.85%

• ROE (FY24): 88.73%

• RoNW (FY24): 88.73%

• Annualised EPS (Latest): ₹25.24

• PE Ratio (Latest Annualised): 24.32x

The IPO appears fully priced compared to industry benchmarks, although the high return ratios offer a strong justification for the premium valuation.

IPO Objectives: Use of Proceeds

The company will utilize the net proceeds from the fresh issue towards the following:

1. ₹898.60 million for capital expenditure

2. ₹2,727.58 million for equity investment in wholly-owned subsidiary Oswal Solar to set up new manufacturing units in Karnal, Haryana

3. ₹2,800.00 million for prepayment/repayment of certain borrowings

4. ₹310.0 million for equity investment in Oswal Solar for loan repayment

5. Balance funds for general corporate purposes

This indicates a balanced capital allocation strategy focusing on growth, de-leveraging, and subsidiary expansion.

Promoter Background and Company Strengths

Mr. Vivek Gupta, Promoter, Chairman, and Managing Director, brings 18+ years of industry experience and has played a crucial role in shaping Oswal Pumps' integrated manufacturing model. His leadership is evident in the company’s product expansion, customer acquisition, and backward integration success.

The company’s product portfolio covers critical sectors including agriculture, industry, solar energy, and municipal infrastructure, offering resilience and scalability.

Allotment and Listing Information

Investors can check their Oswal Pumps IPO allotment status online on the registrar's portal by:

• Selecting “Oswal Pumps Limited” from the IPO dropdown

• Entering PAN, Application No., or DP Client ID

• Submitting details to get status

Allotment is expected on June 18, 2025, with listing on June 20, 2025 on BSE and NSE.

Final Verdict: Apply or Avoid?

Despite the relatively high valuation, strong financial performance, 80%+ ROCE, and near 90% ROE show that Oswal Pumps is a high-efficiency business. The ₹50 GMP and 34.42x subscription validate solid investor confidence.

Recommendation:

• For Risk-Averse Investors: Wait and watch post-listing

• For Risk-Tolerant Investors: Apply for potential listing gains of ~8% or long-term wealth creation.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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