Oswal Pumps Limited has launched its Initial Public Offering (IPO) to raise capital for business growth. The IPO comprises a combination of a fresh issue of 1.45 crore equity shares and an offer for sale of 0.81 crore shares. The total offer size aggregates up to Rs. 1,387.34 crore. The IPO opens on June 13, 2025, and closes on June 17, 2025. The equity shares will be listed on the NSE and BSE following the issue. Here’s everything you need to know.
GMP of Oswal Pumps IPO
As of May 29th, 2025, the shares of Oswal Pumps Limited in the grey market were trading at a 13.52 percent premium. The shares in the Grey Market traded at Rs. 697. This gives it a premium of Rs. 83 per share over the cap price of Rs. 614.
Overview of Oswal Pumps
Oswal Pumps Limited was founded in 2003 and is a company that makes and sells different types of pumps used in homes, farms, and industries. Their product range includes solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, wires, cables, and electric panels.
The company has a large factory in Karnal, Haryana, spread over 41,076 square meters. They have completed over 26,270 solar pump installations under the PM-KUSUM scheme in states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
Oswal Pumps is expanding its reach across India, with 636 distributors as of March 2024. They also export their products to 17 countries across the Asia-Pacific, Middle East, and North Africa regions and have a dedicated team of 164 employees.
Promoters of Oswal Pumps
The promoters include Vivek Gupta, Amulya Gupta, and Shivam Gupta. Corporate promoters are Ess Aar Corporate Services, Shorya Trading, and Singh Engcon. The promoters have long-standing experience in pump manufacturing and operations. Vivek Gupta also serves as Chairman and Managing Director of the company.
Selling Shareholders of Oswal Pumps IPO
Promoter Vivek Gupta is selling up to 81 lakh equity shares of Rs. 1 each through the Offer for Sale in the IPO. The other promoters are not selling any shares, which shows their strong confidence in the company’s future. By holding onto their stake, they signal trust in Oswal Pumps Limited’s growth potential.
Lead Managers of Oswal Pumps IPO
IIFL Capital Services, Axis Capital, CLSA India Private, JM Financial, and Nuvama Wealth Management Limited are the lead managers. These firms will handle issue structuring, pricing, and marketing of the IPO. MUFG Intime India Private Limited is appointed as the registrar for the issue.
Objectives of the IPO Offer
Oswal Pumps Limited aims to raise funds through its IPO for various business needs. The company will spend Rs. 89.86 crore to support its capital expenditure. It will invest Rs. 272.76 crore in its subsidiary, Oswal Solar, to help set up new manufacturing units in Karnal, Haryana.
Additionally, Rs. 280 crore will be used to repay or prepay certain outstanding loans taken by the company. Another Rs. 31 crore will be invested in Oswal Solar to help repay its borrowings. The remaining amount will be used for general corporate purposes, such as daily operations and business development.
Financial Analysis of Oswal Pumps
Oswal Pumps Limited’s revenue has increased from Rs. 387.47 crore in FY23 to Rs. 761.23 crore in FY24, which represents a growth of 96.46 percent. The net profit has increased by 185.58 percent from Rs. 34.20 crore in FY23 to Rs. 97.67 crore in FY24.
Oswal Pumps Limited’s revenue and net profit have grown at a CAGR of 45.19 percent and 140.19 percent, respectively, over the last two years. In the 9M FY25, the company earned revenue of Rs. 1,067.34 crore and a net profit of Rs. 216.71 crore.
Oswal Pumps Vs Peers
Oswal Pumps reported revenue of Rs. 758.57 crore in FY2024 with an EPS of Rs. 9.82 and RoNW of 88.73 percent. In comparison, Kirloskar Brothers Limited earned Rs. 4,001 crore with an EPS of Rs. 43.84 and RoNW of 22.30 percent. Shakti Pumps (India) Limited reported Rs. 1,370.7 crore in revenue, Rs. 12.82 EPS, and a higher RoNW of 24.12 percent, and there are other peers like WPIL Limited, KSB Limited, and Roto Pumps Limited.
The company’s net asset value per share is Rs. 16.10, compared to Rs. 216.47 for Kirloskar Brothers, Rs. 127.56 for WPIL, Rs. 74.81 for KSB, Rs. 31.03 for Roto Pumps Limited, and Rs. 68.36 for Shakti Pumps (India) Limited.
Oswal Pumps Strengths and Weaknesses
Strengths:
- Wide product range across pumps and solar energy systems.
- Strong brand recognition in rural and industrial India.
- Export presence in over 50 countries supports revenue diversification.
- Backward integration ensures cost control and better margins.
- Rising focus on solar energy aligns with government initiatives.
Weaknesses:
- High dependence on the agricultural sector exposes it to monsoon cycles.
- A working capital-intensive business could affect liquidity.
- Faces intense competition from established listed players.
- A large offer size may lead to equity dilution.
- Geographical concentration in North India for manufacturing operations.
Conclusion
Oswal Pumps Limited shows strong growth in fluid management and solar. Investors who want to invest in industrial and clean-tech sectors may find this IPO a good opportunity. However, they should check the risks in the sector, the company’s financial performance, and compare it with other similar companies before investing.
Written By – Nikhil Naik
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