Equity Market
All about Oswal Pumps IPO
ABOUT COMPANY
Oswal Pumps Limited, based in Karnal, Haryana, is a leading Indian manufacturer of pumps and motors, specializing in solar-powered and grid-connected solutions. Founded in 2003, the company has carved a niche in the renewable energy and agricultural sectors under the ‘Oswal’ brand.
Business Overview
- Products: Solar pumps, submersible pumps, monoblock pumps, electric motors, and solar modules. They cater to agricultural, residential, commercial, and industrial needs.
- Manufacturing: Operates a facility in Karnal with an annual capacity of 300,000 pumps and 100,000 motors. A new facility is planned via its subsidiary, Oswal Solar.
- Market Reach: Exports to 17 countries and has a domestic network of 925 distributors as of December 2024.
- Government Schemes: A key player in the PM Kusum Scheme, having installed 38,132 solar pumping systems by December 2024, supporting India’s renewable energy goals.Oswal Pumps Limited, a Haryana-based manufacturer of solar-powered and grid-connected pumps, is launching its initial public offering (IPO) to raise funds for expansion.
IPO Details
- Issue Size: ₹1,387.34 crore, comprising a fresh issue of ₹890 crore and an offer for sale (OFS) of 81 lakh shares (₹497.34 crore) by promoter Vivek Gupta.
- Price Band: ₹584 to ₹614 per share.
- Lot Size: Minimum 24 shares (₹14,736 for retail investors at the upper band).
- Investor Quotas: Retail 35%, QIB 50%, HNI 15%.
- Market Cap: ₹6,998.21 crore at the upper price band.
- Dates:
- Opens: June 13, 2025,
- Closes: June 17, 2025 and
- Allotment: June 18, 2025
- Listing: June 20, 2025, on BSE and NSE.
Financial Performance
- FY24: Revenue ₹758.57 crore (up 97% from ₹385.04 crore in FY23), PAT ₹97.67 crore (up 186% from ₹34.20 crore).
- 9M FY25 (ended December 2024): Revenue ₹1,065.67 crore, PAT ₹216.71 crore.
- Revenue growth CAGR of 45.07% from FY22 to FY24, driven by solar pump demand.
IPO Objectives
- Proceeds from the fresh issue will be used for:
- Capital expenditure: ₹89.86 crore.
- Investment in subsidiary Oswal Solar for a new manufacturing facility in Karnal: ₹273 crore.
- Debt repayment: ₹280 crore for the company, ₹31 crore for Oswal Solar.
- General corporate purposes.
Strengths
- Strong growth in the solar pump sector, supported by government initiatives like PM Kusum.
- Robust financials with high revenue and profit growth.
- Experienced management and a wide distribution network.
Risks
Heavy reliance on government tenders under PM Kusum Scheme (85.72% of FY24 revenue); any policy change could impact operations.
Concentration risk: Top 10 customers account for 79.5% of FY24 revenue, and Haryana is a key market.
Competitive market with peers like Kirloskar Brothers and Shakti Pumps.
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