| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 584 to ₹ 614 | 24 | 13th Jun, 2025 – 17th Jun, 2025 | ₹1387.34 Cr |
Oswal Pumps Limited IPO
Oswal Pumps is a well-established manufacturer of solar-powered and grid-connected submersible and monoblock pumps, along with electric motors (including both induction and submersible types) and solar modules. Operating under the “Oswal” brand, the company brings over two decades of experience in engineering, product design, and manufacturing for the pump industry. The company serves a broad customer base across agriculture, residential, commercial, and industrial segments. In agriculture, the company’s pumps are used for field irrigation; in residential settings, they support water supply, gardening, and cleaning needs. Commercial clients, such as malls and hotels, use their products for water management, while industrial applications include boilers, water treatment, sewage handling, and machinery operations. As of December 2024, Oswal Pumps has executed more than 38,000 turnkey solar pumping system orders directly under the PM-KUSUM scheme across multiple states, including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra. In FY23 and FY24, it emerged as one of the top suppliers under the scheme. The company stands out as one of the few fully integrated players in the country, with in-house capabilities to manufacture solar pumps, modules, and controllers, as well as providing installation services. In 2024, the company further strengthened its vertical integration by starting solar module production through its wholly owned subsidiary, Oswal Solar Structure Private Limited. Oswal Pumps distribution network in India has expanded significantly, from 473 distributors in FY22 to 636 in FY24, enabling the company to serve a broader retail market. The company also exports products to 17 countries across Asia-Pacific, the Middle East, and North Africa. In 9MFY25, the company derived majority of its revenue from the submersible pumps system, which contributed Rs. 6,562 million or 66.6% of total operational revenue. This was followed by monoblock pumps at Rs. 1,174 million (11.9%) and solar submersible pumps at Rs. 437 million (4.4%). Other contributors included electric motors at Rs. 440 million (4.5%), non-solar submersible pumps at Rs. 358 million (3.6%), solar monoblock pumps at Rs. 122 million (1.2%), non-solar monoblock pumps at Rs. 41 million (0.4%), and others at Rs. 716 million (7.3%).
Objective of the Oswal Pumps Limited IPO
The company proposes to utilize net proceeds (Rs. 8,900 million) towards funding the following objects:
- funding certain capital expenditure of the company;
- investment in its wholly-owned subsidiary, Oswal Solar, in the form of equity, for funding the setting up of new manufacturing units at Karnal, Haryana;
- pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the company;
- investment in its wholly-owned subsidiary, Oswal Solar, in the form of equity, for repayment/prepayment, in part or full, of certain outstanding borrowings availed by Oswal Solar; and
- general corporate purposes.
Proceeds from OFS constitute of Rs. 4,973 million which will not be received by the company
Rationale To Oswal Pumps Limited IPO
Deepening integration to drive margin expansion and manufacturing efficiency
The company’s vertically integrated manufacturing model positions it firmly in the pump and solar solutions space. It manufactures key components for pumps and solar modules in-house, thereby significantly reducing its dependence on external vendors. The company is well-positioned to deliver cost-efficient and high-margin solutions backed by its associate, Walso Solar Solution Private Limited, which specializes in mounting structures and other essential components for turnkey solar systems. This integration enables end-to-end control from component manufacturing to project execution, enhancing product quality, ensuring supply chain efficiency, and supporting margin expansion. Notably, the company recorded one of the highest EBITDA margins among peers in FY24 (30.1% in 9MFY25), up from 10.7% in FY22, showcasing clear operating leverage gains. Building on its already robust vertically integrated operations, the company is now strategically investing to further integrate key processes in the pump manufacturing value chain, such as no-bake casting and aluminium heat sink die casting. These processes not only reduce reliance on external vendors but also bring efficiency, quality improvements, and cost savings. The company is also developing in-house capabilities for high-value components, such as Variable Frequency Drives (VFDs) and single-phase controllers, which are currently sourced externally, to further strengthen margin control.
Integrated product diversification strategy strengthened by expanding market reach
The company’s comprehensive and diversified product portfolio across solar-powered and grid-connected pumps, electric motors, and solar modules under the ‘Oswal’ brand has enabled it to address a broad spectrum of needs in agricultural, industrial, and residential sectors, reinforcing strong brand recall over its 20+ year presence. To capitalise on this strength, the company is executing a dual strategy of product expansion and market penetration. On the product front, it is introducing new industrial pumps and motors, such as pressure pumps, helical rotor pumps, and vibrant motors, while also expanding solar module production through backward integration of critical components like EVA, aluminium frames, and junction box back sheets. These initiatives are designed to optimise cost, improve quality, and ensure long-term supply reliability. Simultaneously, the company is aggressively strengthening its market presence. It has nearly doubled its domestic distributor base to 925 as of December 2024 from 473 distributors in March 2022, with focused expansion in high-potential states such as Karnataka, Gujarat, and Tamil Nadu. On the export front, the company already supplies to 22 countries and aims to deepen its presence in global markets, including the US, Europe, and Africa, with a strong emphasis on solar modules and electric motors.
Valuation of Oswal Pumps Limited IPO
Oswal Pumps is the fastest-growing vertically integrated solar pump manufacturer in India, in terms of revenue, reporting a CAGR growth of 45.1% between FY22 and 24. The solar pump market in India was valued at Rs. 164.5 billion in FY25 and is expected to grow at a CAGR of 11.0% between FY25 and FY30, reaching Rs. 271.1 billion by FY30. Given the company’s strong brand equity in solar pumps, diversified product offerings, and integrated manufacturing capabilities, it is well-positioned to capitalise on these structural growth drivers. Its robust domestic distribution network and expanding presence in high-growth states further enhance its ability to monetise the sector’s rising demand. On the financial front, EBITDA margins expanded from 10.7% to 19.8% between FY22 and FY24, reflecting the company’s strong operational control and backward integration efforts. The company also delivered robust returns on profitability, with ROE and ROCE at 54.5% and 54.9%, respectively, for FY24, while ROAE was reported at 75.6% for the same period. The company has significantly reduced its D/E from 2.1x in FY22 to 0.4x in FY24, while the ratio for 9MFY25 stood at 0.9x. A significant uptick in short term financing primarily drove the increase. However, despite the rise in debt, the comfort remains steady, with a healthy increase in its interest coverage ratio, which rose from 4.6x to 11.2x between FY22 and 9MFY25. The issue is valued at a price-to-earnings (P/E) ratio of 21.2x on the upper price band based on FY25 earnings (annualised), which is relatively cheaper compared to its peers. Considering the above compelling factors, we recommend a “SUBSCRIBE” rating for this issue.
What is the Oswal Pumps Limited IPO?
Oswal Pumps Limited IPO is a book built issue of Rs 1387.34 crores. The issue is mix of both fresh issue and offer for sale a fresh issue of 890.00 crore shares and offer for sale is 497.34 crore. Oswal Pumps Limited bidding opened for subscription on Jun 13, 2025 and will close on Jun 17, 2025. Oswal Pumps Limited will list on BSE, NSE with tentative listing date fixed as Friday, 20, June 2025.
How to apply for the Oswal Pumps Limited IPO through StoxBox?
To apply for the Oswal Pumps Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Oswal Pumps Limited IPO open?
Oswal Pumps Limited IPO is opening on 13th Jun 2025. Apply Now
What is the lot size of the Oswal Pumps Limited IPO?
The Lot Size of Oswal Pumps Limited IPO is 24 equity shares. Login to your account now.
When is the Oswal Pumps Limited allotment date?
The allotment Date for Oswal Pumps Limited IPO is 18th Jun 2025. Login to your account now.
When is the Oswal Pumps Limited IPO listing date?
The listing Date for Oswal Pumps Limited IPO is 20th Jun 2025. Login to your account now
What is the minimum investment required for the Oswal Pumps Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,736. Login to your account now
What is the maximum investment allowed for the Oswal Pumps Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 191,568. Login to your account now
What are the risks associated with investing in the Oswal Pumps Limited Equipments Limited IPO?
A significant portion of the company’s revenues is derived from turnkey solar pumping systems awarded through government tenders under the PM-KUSUM scheme. Any reduction in government funding, policy changes, or failure to secure future tenders could have a material impact on revenue visibility, order inflows, and cash flows.
The company is significantly dependent on its top 10 customers, who accounted for 79.5%, 72.6%, and 66.3% of revenue from operations in FY24, FY23, and FY22, respectively.
All of the company’s manufacturing facilities are located in Karnal, Haryana, which exposes operations to risks from local and regional factors.
When will the Oswal Pumps Limited IPO shares be credited to my Demat account?
The Oswal Pumps Limited . IPO be credited to the account on allotment date which is 18th Jun 2025. Login to your account now
Where can I find the Oswal Pumps Limited IPO prospectus?
The prospectus of Oswal Pumps Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
