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IPO listed on 20 Jun'25

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Oswal Pumps Ltd

Minimum Investment

14,736 / 24 shares

Grey market premium

41 (7% premium)

Issue price

614

Listing price

634

% since launch

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Listing on

Jun 20, 2025

Our Verdict:

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  • Oswal Pumps Ltd (OPL) has demonstrated robust financial growth in recent years, backed by industry-leading return ratios and profitability margins. FY25E growth also looks promising based on annualized figures.
  • From a valuation standpoint, the IPO is priced at a P/E multiple of 21x based on 9MFY25 annualized earnings. However, using FY24 EPS, the P/E multiple stands at 62.5, indicating a more aggressive pricing.
  • Nevertheless, OPL’s long-term growth potential remains strong. The Indian solar pump market was valued at Rs 164.5 billion in FY25 and is expected to grow at a CAGR of 11% through FY30, reaching Rs 271.1 billion. With a strong brand presence in the solar pump sector, diversified product offerings and integrated manufacturing capabilities, OPL is well-positioned to capitalize on these growth drivers.
  • Additionally, as a key supplier of solar-powered agricultural pumps under the PM Kusum Scheme, OPL stands to benefit from favourable industry trends. Given these factors, the IPO is well-suited for investors with a medium-to-long-term investment horizon.

About the company

Founded in

15 Jul'03

Managing director

Vivek Gupta

  • OPL manufactures a range of products, including solar-powered and grid-connected submersible and monoblock pumps, electric motors (induction and submersible) and solar modules, all sold under the ‘Oswal’ brand. Its diverse product portfolio caters to the agricultural, residential and industrial sectors.
  • OPL operates two manufacturing facilities in Karnal, Haryana, with an annual installed capacity of 1,160.07 MT for stainless steel pumps, 2,366.04 MT for cast iron pumps, 1,314.72 MT for stainless steel motors and 561.60 MT for cast iron motors as of December 31, 2024.
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STRENGTHS

  • Impressive Growth: OPL stands as the fastest-growing vertically integrated solar pump manufacturer in India, delivering a strong CAGR of 45% in operational revenue, 97% in EBITDA, and 140% in net profit from FY22 to FY24.
  • Exceptional Return Metrics: OPL exhibits robust operational efficiency, boasting an outstanding Return on Net Worth (RoNW) of 88.73% and Return on Capital Employed (RoCE) of 81.85% in FY24, significantly outperforming its listed peers.
  • Rising Profit Margins: OPL has consistently strengthened its profitability, with EBITDA margins growing from 10.69% in FY22 to 19.79% in FY24. Net profit margins have also risen from 4.69% to 12.83%, reaching 20.30% in 9MFY25.
  • Strategic Market Presence: OPL holds a dominant position in North India, particularly in major agricultural states such as Haryana. The firm also has a growing footprint in regions including Maharashtra, Uttar Pradesh, Rajasthan, Chhattisgarh and Punjab. Additionally, OPL operates through an extensive network of 925 distributors across India.
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RISK FACTORS

  • Dependence on Government Schemes: A significant portion of OPL's revenue is derived from the supply of Turnkey Solar Pumping Systems under the PM Kusum Scheme, awarded through tenders by state and central government institutions. Any reduction in government funding for this scheme or the inability to secure contracts could negatively impact the business and operational results.
  • Client Concentration: As of December 31, 2024, around 79% of OPL's revenue comes from its top 10 customers. A decline in business from these key clients could adversely affect the company’s operations and financial performance.
  • Subsidiary Losses: OPL's subsidiaries, Oswal Solar and Oswal Green, have incurred losses in the past and may continue to do so in the future. Such losses could negatively affect the overall business and results.
  • Trade Receivables & Liabilities: As of December 31, 2024, OPL has significant trade receivables of Rs 711.11 crore and financial liabilities of Rs 190.1 crore. Inability to efficiently manage these receivables and liabilities could negatively impact the company's business, financial health and overall performance.

Financials

All Values are in Cr.

Issue details

Issue type

Mainstream

Issue size

1,387.34 crore

Fresh Issue

890 crore

OFS

497.34 crore

Price range

₹ 584 - 614

Lot size

24 shares

Issue Objective

The net proceeds from the fresh issue will be utilized for:

  • Funding the company’s capex;
  • Establishing new manufacturing units in Haryana;
  • Repaying or pre-paying certain borrowings of the company and its subsidiary; and
  • General corporate purposes.

Dates

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Bidding open

13 Jun'25

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Bidding close

17 Jun'25

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Allotment date

18 Jun'25

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Refund date

19 Jun'25

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Listing

20 Jun'25

IPO Reservations

Qualified institutional buyers

<50%

Non-institutional investors

>15%

Retail individual investors

>35%

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