Oswal Pumps IPO Explained:

Details, Financials, Should You Invest?

Fri Jun 13, 2025

💧 Oswal Pumps IPO: Should You Dive In or Stay Dry?

The Indian IPO market is buzzing once again, and this time it’s Oswal Pumps Limited making waves. With a hefty ₹1,387.34 crore IPO on the table and a strong footprint in the solar and water pump segment, investors are asking the all-important question:

Should you invest in the Oswal Pumps IPO or let it pass?
Let’s break it down.

📅 IPO Snapshot

Detail	Information
IPO Open Date	June 13, 2025
IPO Close Date	June 17, 2025
Price Band	₹584 – ₹614 per share
Lot Size	24 Shares
Issue Size	₹1,387.34 Crore
Fresh Issue	₹890 Crore
Offer For Sale	₹497.34 Crore
Listing Date (Tentative)	June 20, 2025
Exchange	NSE and BSE

🏢 About Oswal Pumps Established in 2003, Oswal Pumps Limited is a leading manufacturer of:

Submersible pumps
Monoblock pumps
Solar-powered water pumps
Electric motors and solar inverters

What sets them apart is their vertically integrated manufacturing plant based in Karnal, Haryana, which gives them control over cost and quality — a key competitive edge. With a strong B2B and retail network (over 900+ distributors and 248+ exclusive retail outlets branded as Oswal Shopee), Oswal has positioned itself as a rural and semi-urban market leader, especially under schemes like PM-KUSUM.

📈 Financial Highlights Oswal’s numbers have seen exceptional growth over the last few years:

Fiscal Year	Revenue (₹ Cr)	Net Profit (₹ Cr)
FY 2022	₹360 Cr	₹17 Cr
FY 2023	₹759 Cr	₹98 Cr
9M FY 2024	₹1,066 Cr	₹217 Cr

📊 CAGR Growth (FY22 to FY24):

Revenue: 58%
PAT: 157%

Such high growth figures backed by solid government orders have caught the eyes of both institutional and retail investors alike.

🔍 Grey Market Premium & Anchor Response Before opening to the public, Oswal raised ₹416.2 crore from anchor investors, with heavyweights like ICICI Prudential, Amundi, and BNP Paribas subscribing. 📌 Grey Market Premium (GMP): ₹60–₹83
➡️ Implies an expected listing price of ~₹670, a ~13% gain on the upper band.

⚖️ Strengths & Risks ✅ Strengths:

Government-backed demand: Major supplier under PM-KUSUM
Backward integration: Helps with better margins and pricing power
Pan-India network: 900+ distributors & 200+ Oswal Shopee stores
Strong order book: Over ₹1,100 crore with ₹3,000+ crore in pipeline
Focus on renewables: Solar-powered products position it for long-term growth

⚠️ Risks:

Heavy dependence on government subsidies — over 80% of revenue
Working capital strain — high receivable days (~150 days)
Rich valuation — P/E ~24x vs peers like Shakti Pumps (~18–22x)
Execution risk — capacity expansion and large orders may stretch operations

📢 Expert Opinions 🗣️ Brokerages Speak:

SMIFS & Arihant Capital: "Strong fundamentals, positive sector outlook — Subscribe."
SBI Securities: "Well-poised for long-term gains — Subscribe with caution."
Canara Bank Securities: "Valuations are stretched, but order book supports growth."
Deven Choksey Group: "High PAT growth makes it an attractive long-term play."

🧠 Verdict: Should You Invest?

If you’re a long-term investor looking to ride India’s solar and rural infra growth story, Oswal Pumps could be a smart bet. With strong financials, a booming order pipeline, and government backing, the fundamentals look solid.

However, if you're a short-term trader, keep an eye on:

Subscription data on Day 2 and 3
QIB interest (so far low)
Final GMP before allotment

🔑 Strategy Suggestion:
Retail investors can consider applying at the cut-off price. Avoid over-leveraging or over-allotment hopes — play it smart and wait for listing-day signals.

📌 Final Thoughts Oswal Pumps isn’t just another IPO — it’s a play on India’s water crisis, rural electrification, and clean energy push. It’s rare to see such fast-growing companies with government-backed tailwinds.

"The deeper the foundation, the stronger the pump — and Oswal has laid its roots deep."

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Oswal Pumps IPO Explained:

Details, Financials, Should You Invest?

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