Oswal Pumps Limited, established in 2003, is among India's fastest growing companies specializing in solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires and cables, and electric panels. The company operates from a unique integrated manufacturing facility supported by a team of experienced engineers and technicians, making it a leader in its industry segment.

IPO Issue Details

The company has announced a Book Built Issue totaling ₹1,387.34 Crores. This consists of a Fresh Issue of 144.95 lakh shares valued at ₹890 Crores, and an Offer for Sale (OFS) of 81 lakh shares worth ₹497.34 Crores. The IPO opens on June 13, 2025, and closes on June 17, 2025. Allotment is expected on or about June 18, 2025, with tentative listing scheduled for June 20, 2025 on both the BSE and NSE.

The price band for the IPO is set between ₹584 and ₹614 per equity share. The market capitalization at the upper band price of ₹614 will be approximately ₹6,998.21 Crores. The IPO lot size is fixed at 24 shares, with retail investors required to invest a minimum of ₹14,736, while High Net Worth Individuals (HNIs) must invest a minimum of 14 lots (336 shares), totaling ₹2,06,304.

The IPO is managed by a consortium of leading Book Running Lead Managers (BRLMs) including IIFL Capital Services Limited, Axis Capital Limited, CLSA India Private Limited, JM Financial Limited, and Nuvama Wealth Management Limited. MUFG Intime India Private Limited is the registrar for the issue.

Grey Market Premium and Subscription Update

The Grey Market Premium (GMP) for Oswal Pumps IPO currently stands at ₹50, implying an expected listing gain of about 8.14%. It’s important to note that GMP is an informal indicator and depends on unregulated demand-supply factors.

As of 11:00 AM on June 17, 2025, the IPO subscription status showed a subscription of 2.89 times, indicating strong investor interest on the final day of the issue. Live subscription data is available on the BSE website.

Anchor Investors

Oswal Pumps successfully raised ₹416.20 Crores from anchor investors at ₹614 per share, allocating 67,78,533 equity shares to Qualified Institutional Buyers (QIBs) under the anchor portion. This pre-commitment reflects confidence from institutional investors.

IPO Objectives

The net proceeds from the IPO will be used for multiple growth and financial objectives:

1. ₹89.86 Crores towards capital expenditure.

2. ₹272.76 Crores to invest in the wholly-owned subsidiary Oswal Solar for setting up new manufacturing units at Karnal, Haryana.

3. ₹280 Crores for prepayment or repayment of certain outstanding borrowings.

4. ₹31 Crores to Oswal Solar for repayment/prepayment of borrowings.

5. The remaining funds will be used for general corporate purposes.

Financial Performance and Promoter Profile

Vivek Gupta, the Promoter, Chairman and Managing Director, brings over 18 years of experience in the pump manufacturing industry. Under his leadership, Oswal Pumps has expanded its product portfolio and backward integrated manufacturing capabilities.

The company’s financial growth has been impressive over recent years:

Key valuation metrics for FY24 include a pre-issue EPS of ₹9.82 and post-issue EPS of ₹8.57. The pre-issue Price-to-Earnings (P/E) ratio stands at 62.53x, and post-issue P/E ratio at 71.66x, which is notably higher than the industry average P/E of 49x. The company’s ROCE stands at 81.85%, ROE at 88.73%, and RoNW at 88.73%, indicating strong operational efficiency and profitability.

The annualized EPS based on the latest financial data is ₹25.24, corresponding to a P/E of 24.32x, suggesting that the IPO pricing is at a premium level.

IPO Review and Recommendation

Oswal Pumps Limited is a fast-growing company with a diversified product portfolio and strong financial growth. The IPO proceeds aim to support capital expansion and debt reduction, further strengthening the company’s market position. The involvement of reputable anchor investors adds credibility.

However, the IPO's valuation appears fully priced to slightly overvalued, given the high P/E ratios compared to the industry. The Grey Market Premium of ₹50 indicates moderate listing gains.

For risk-tolerant investors seeking potential listing gains, applying to the Oswal Pumps IPO may be considered. Conservative investors may prefer to monitor post-listing performance before investing.

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.

The Upcoming IPOs in this week and coming weeks are Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures.

The Current active IPO are  Eppeltone Engineers, Oswal Pumps, Patil Automation, Samay Projects Services, Aten Papers.

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