Oswal Pumps IPO: Should You Apply? 5 Things Investors Should Know

Oswal Pumps, one of India’s fastest-growing manufacturers of solar-powered pumps, has opened its Initial Public Offering (IPO) for public subscription starting 13 June 2025. The IPO will remain open until June 17.

Oswal Pumps has set the price band for its ₹1,387 crore IPO between ₹584 and ₹614 per share. Investors can apply for a minimum of 24 equity shares, and thereafter in multiples of 24 shares.

Source: Economic Times

Let’s look at everything you need to know before applying — from GMP trends and financial performance to expert recommendations.

GMP Update

As of the IPO opening day, the grey market premium (GMP) for Oswal Pumps was around ₹68 per share. Based on the upper price band of ₹614, this suggests a potential listing price of ₹682, or an estimated 11% gain on listing day.

Source: Economic Times

This indicates healthy investor interest even before the stock is listed on the exchanges.

Oswal Pumps Ltd.  IPO Details

Offer Price	₹584 to ₹614  per share
Face Value	₹1 Per Share
Opening Date	13th June 2025
Closing Date	17th June 2025
Tentative Listing Date	20th June 2025
Total Issue Size (in ₹)	₹1387.34 Cr
Issue Type	Bookbuilding IPO
Lot Size	63 Shares
Listing at	BSE, NSE

Source: Chittorgarh.com

IPO Structure and Key Details

The IPO consists of two parts:

• A fresh issue of shares worth ₹890 crore
  
• An Offer for Sale (OFS) of 81 lakh shares by the promoter, Vivek Gupta
  

Ahead of the public subscription, Oswal Pumps successfully raised ₹416 crore on June 12 from anchor investors. Shares were allotted at ₹614 each to prominent institutions such as Societe Generale, Smallcap World Fund, and ICICI Prudential.

According to a circular published on the BSE website, the anchor investors in Oswal Pumps IPO include ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, Aditya Birla Sun Life Mutual Fund, Quant Mutual Fund, Societe Generale, Edelweiss Life Insurance, BNP Paribas, Amundi (a Paris-based asset management firm), and Capital Group, a global financial services firm.

Source: LiveMint

What Does Oswal Pumps Do?

Founded in 2000, Oswal Pumps is a leading manufacturer of a wide range of products, including solar-powered submersible pumps, grid-connected pumps, monoblock pumps, electric motors, and solar panels and modules. 

The company has seen rapid growth, particularly under government initiatives like the PM Kusum Yojana, which promotes solar-powered irrigation. As of December 2024, Oswal Pumps contributed to nearly 38% of India’s total installed solar pump capacity under this scheme.

Oswal Pumps operates a large, single-site manufacturing facility in Karnal, Haryana, with a vertically integrated production setup. Its strong distribution network includes 925 distributors and 248 branded retail outlets known as Oswal Shopee, as of June 2025.

Oswal Pumps Expanding Distribution Network

Oswal Pumps has been steadily expanding its distributor network across India, growing from 473 distributors as of March 31, 2022, to 636 distributors by March 31, 2024. In addition to domestic growth, the company has made its international presence felt, exporting products to 17 countries in the Asia-Pacific, Middle East, and North Africa regions between April 1, 2021, and March 31, 2024.

Source: LiveMint

Oswal Pumps Financial Performance

For the nine-month period ending December 2024, the company reported total revenue of ₹1,065.67 crore and a net profit of ₹216.71 crore, reflecting strong financial performance. As of April 2025, Oswal Pumps had total outstanding borrowings of ₹308.57 crore on a standalone basis, indicating a moderate debt level relative to its revenue base.

Source: LiveMint

SWOT Analysis of Oswal Pumps

STRENGTHS	WEAKNESSES
Leading solar pump supplier, strong PM-KUSUM scheme beneficiary.Vertically integrated manufacturing, ensuring cost and quality.Diverse product range, catering to various sectors.Strong distribution network and expanding national presence.Robust financial growth,  revenue and profit.	High dependence on government schemes (PM-KUSUM).Significant working capital requirements, affecting cash flow.Revenue concentration from few states and top customers.Reliance on experienced senior management and skilled technicians.Limited global brand recognition despite some exports.
OPPORTUNITIES	THREATS
Growing demand for solar and energy-efficient pumps.Government’s focus on clean energy and irrigation schemes.Expansion into untapped rural and semi-urban markets.Increasing export potential in emerging economies.Diversifying product portfolio into industrial pumps.	Intense competition from domestic and international players.Fluctuations in raw material prices impacting margins.Operational disruptions or single-location manufacturing risks.High valuation compared to industry peers.

Expert Review: Should You Subscribe?

Brokerages are mostly positive on Oswal Pumps’ IPO. For example, SBI Securities has recommended a ‘Subscribe for long-term’ call.

 Key Reasons to Subscribe:

• Strong revenue and profit growth
  
• Dominant share in government-backed solar pump schemes
  
• Robust order book of ₹1,100 crore
  
• Efficient cost structure and high profitability
  
• Reasonable valuations vs. peers

Brokerage firms recommend subscribing to the IPO for the long term, citing the company’s strong fundamentals, leading market position under the PM Kusum scheme, and efficient cost structure.

Source: Economic Times

Conclusion

Oswal Pumps has established a strong presence in India’s expanding solar equipment sector. Backed by a solid track record, robust financial performance, and a leading role in solar pump installations, the company shows potential for sustained growth. 

While the grey market premium indicates possible short-term listing gains, future performance may depend on factors such as continued government support and effective management of receivables.

Happy Investing.

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