As an investor, deciding whether the Oswal Pumps IPO is Good or Bad to invest in can often be challenging. If you are confused and worried about whether to Apply or Not the Oswal Pumps IPO. Then worry not, here we are describing 10 important key points & an in-depth, detailed Oswal Pumps IPO review which will help you to make the decision.
Strengths and Weaknesses of Oswal Pumps IPO
Strengths:
- Oswal Pumps is one of the largest suppliers of solar-powered agricultural pumps under the PM Kusum Scheme and is poised to grow further due to its high-quality and strong demand in the industry.
- The company is always looking for ways to improve its product designs and ways to reduce its costs with the help of a skilled engineering and design team of 15 employees.
- Under the Oswal brand, the company offers a wide range of solar-powered and grid-connected submersible and monoblock pumps, electric motors, as well as solar modules.
- What makes Oswal Pumps unique from its competitors is having wide network of 636 distributors across India.
Weaknesses:
- Oswal Pumps mostly runs its business by supplying turnkey solar pumping systems via various tenders under the PM Kusum Scheme. However, there is no guarantee that the government will keep running the scheme or that we will win future bids. If the government stops this scheme or fails to get the new contracts, it can negatively affect the business’s financial performance.
- The company is reliant on the agricultural sector for irrigating fields, and if there are any negative changes in the agricultural sector, it can badly affect the business’s financial performance, cash flows, and profits.
- Oswal Pumps mainly earns revenue by selling its products in states like Haryana, Maharashtra, Uttar Pradesh, and Rajasthan. If there is any negative changes happen in these states can adversely affect the business, profits, and financial health.
- Its business mostly generates revenue via the top 10 customers. Losing any of those customers can negatively affect the business, financial health, and cash flow.
Oswal Pumps IPO Details
| IPO Size | ₹1,387.34 crores |
| Offer-for-sale | 81,00,000 equity shares |
| Fresh issue | ₹890 crores |
| Price band | ₹584 to ₹614 |
| Subscription | Opens on June 13, 2025, and the closing date is June 17, 2025 |
| Purpose of IPO | Fresh Issue & Offer-for-Sale |
Oswal Pumps IPO Open and closing date?
The Oswal Pumps IPO opening date is June 13, 2025, and the closing date is June 17, 2025.
What is the size of the Oswal Pumps IPO?
Oswal Pumps planned to raise funds of around ₹1,387.34 crores via IPO. This IPO comprises a combination of a fresh issue of ₹890 crores and an offer for sale up to 81,00,000 equity shares with a face value of Rs.1 each.
What are the subscription details of the Oswal Pumps IPO?
The price range of Oswal Pumps IPO is set as ₹584 to ₹614 per share. In this IPO, a total of 24 shares were available in 1 lot size for the minimum Retail category, and for the maximum retail category, 312 shares in 13 lot sizes were available. For the S-HNI Minimum category, 336 shares were available in the 14 lot sizes. While for the B-HNI Minimum category, 1,632 shares were available in 68 lot sizes.
To invest in this IPO, each investor category has specific investment amounts:
- Retail Investors: Minimum investment of ₹14,736 and maximum investment of ₹1,91,568.
- Small HNI (S-HNI): Minimum investment of ₹2,06,304.
- Big HSI (S-HNI): A minimum investment of ₹10,02,048 is required.
What is the Oswal Pumps IPO listing Date?
Oswal Pumps is a Mainboard IPO shares will be listed on June 20, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
What are the objectives of the Oswal Pumps IPO Issue?
The raised funds from the fresh issue will be utilized to handle the investment in the subsidiary, Oswal Solar, in the form of debt or equity, for funding the setting up of new manufacturing units at Karnal, Haryana. Some funds will be used for the Pre-payment/repayment, in part or full, of existing borrowings taken by the Company. At last, use the remaining funds to support general corporate purposes.
About Oswal Pumps
Incorporated in 2003, Oswal Pumps is one of the prominent companies that formerly focused on the manufacturing of low-speed monoblock pumps. Initially, the company decided to expand its business with the manufacturing of grid-connected high-speed monoblock pumps, grid-connected submersible pumps, and electric motors (both induction and submersible types), and solar modules under the brand ‘Oswal’. Their products cater to various industries, such as agricultural for the field irrigation. In commercial places like malls, offices, and hotels, industrial uses for boilers, water treatment, water transport, sewage, and in home uses like for gardening, fountains, water supply for tanks, and cleaning. As of August 31, 2024, Oswal Pumps has completed over 26,270 turnkey orders for solar pumping systems under the PM-KUSUM scheme for various states such as Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
Oswal Pumps Financials
The company reported revenue of ₹761.23 crores in 2024 against ₹387.47 crores in 2023. The company reported a profit of ₹97.67 crores in 2024 against a profit of ₹34.2 crores in 2023.
Oswal Pumps IPO Promoters
The promoters of the company are Vivek Gupta, Amulya Gupta, Shivam Gupta, Ess Aar Corporate Services Private Limited, Shorya Trading Company Private Limited, and Singh Engcon Private Limited.
Who are the Oswal Pumps IPO lead managers and registrar?
IIFL Capital Services Limited, Axis Capital Limited, Clsa India Private Limited, JM Financial Limited, and Nuvama Wealth Management Limited are the lead managers of Oswal Pumps, while MUFG Intime India Private Limited is the registrar of the company.
Should You Apply or Not for the Oswal Pumps IPO?
Whether or not to apply for the Oswal Pumps IPO depends on your investment goals and risk appetite. Oswal Pumps is one of the leading players in the solar-powered agricultural pump market under the PM Kusum Scheme. Over the years, the company has shown incredible growth in revenue and profitability. Having a strong distribution network, strong in-house manufacturing, and a high return on capital makes it an attractive choice for investors to invest in this IPO. In FY24, the company has successfully installed a total of up to 9,383 pumps, showcasing great execution capabilities and operational efficiency. If we talk about the company’s financial performance. In FY24, Oswal Pumps has generated a revenue of ₹696.24 crore from operations in Maharashtra, Haryana, and Rajasthan. If you are confident enough in the continued growth potential of integrated solar pump manufacturers and are seeking a long-term growth opportunity, then you can consider investing in this IPO. However, before applying for this IPO, one must required to check the company’s financial background, cash flow, revenue, and assets.
