The Oswal Pumps IPO is set to make waves in the Indian stock market this June 2025, offering investors an opportunity to participate in one of India’s leading pump manufacturing companies. With a massive issue size of ₹1,387.34 crores and a price band of ₹584-₹614 per share, this IPO has garnered significant attention from retail and institutional investors alike.
But here’s the critical question: Is the Oswal Pumps IPO worth your hard-earned money?
In this comprehensive guide, we’ll dive deep into every aspect of the Oswal Pumps IPO – from its subscription timeline and lot size details to financial performance and investment recommendation. Whether you’re a seasoned investor or just starting your IPO journey, this analysis will help you make an informed decision.
Ready to discover if this IPO could be your next big investment win? Let’s explore…
What is Oswal Pumps IPO? Complete Overview
The Oswal Pumps IPO represents a significant public offering from Oswal Pumps Limited, a prominent manufacturer and distributor of pumps established in 2003. This bookbuilding IPO combines both fresh capital raising and existing shareholder exit opportunities.
Key Oswal Pumps IPO Highlights:
- Total Issue Size: ₹1,387.34 crores
- Fresh Issue: ₹890.00 crores (1.45 crore shares)
- Offer for Sale (OFS): ₹497.34 crores (0.81 crore shares)
- Price Band: ₹584 to ₹614 per share
- Minimum Investment: ₹14,736 (at cut-off price)
The company’s diverse product portfolio includes solar pumps, submersible pumps, monoblock pumps, pressure pumps, and electric motors, catering to domestic, agricultural, and industrial segments.
But what makes this IPO particularly interesting for investors? Let’s examine the subscription details…
Oswal Pumps IPO Subscription Timeline and Important Dates
Complete Oswal Pumps IPO Schedule:
| Event | Date | Day |
|---|---|---|
| IPO Opening Date | June 13, 2025 | Friday |
| IPO Closing Date | June 17, 2025 | Tuesday |
| Allotment Finalization | June 18, 2025 | Wednesday |
| Refund Initiation | June 19, 2025 | Thursday |
| Share Credit to Demat | June 19, 2025 | Thursday |
| Listing Date (Tentative) | June 20, 2025 | Friday |
| UPI Mandate Cut-off | June 17, 2025 (5:00 PM) | Tuesday |
Important Note for Investors:
The Oswal Pumps IPO subscription opens at 10:00 AM on June 13, 2025 and closes at 5:00 PM on June 17, 2025. Given the potential for oversubscription, early application is recommended.
Wondering about the investment amounts? Here’s what you need to know…
Oswal Pumps IPO Lot Size and Investment Requirements
Retail Investor Category:
| Application Type | Lots | Shares | Investment Amount |
|---|---|---|---|
| Minimum Investment | 1 | 24 | ₹14,736 |
| Maximum Investment | 13 | 312 | ₹1,91,568 |
High Net Worth Individual (HNI) Categories:
Small HNI (sNII):
- Minimum: 14 lots (336 shares) = ₹2,06,304
- Maximum: 67 lots (1,608 shares) = ₹9,87,312
Big HNI (bNII):
- Minimum: 68 lots (1,632 shares) = ₹10,02,048
Pro Tip for Oswal Pumps IPO Application:
To avoid rejection due to oversubscription, always bid at the cut-off price of ₹614 rather than any lower price within the band.
Ready to apply? First, let’s understand the reservation structure…
Oswal Pumps IPO Share Allocation and Reservation
The Oswal Pumps IPO follows SEBI’s standard reservation norms:
Share Reservation Breakdown:
| Investor Category | Allocation Percentage | Share Distribution |
|---|---|---|
| Qualified Institutional Buyers (QIB) | Up to 50% | Maximum 50% of total offer |
| Retail Individual Investors | Minimum 35% | At least 35% of total offer |
| Non-Institutional Investors (HNI) | Minimum 15% | At least 15% of total offer |
This reservation ensures fair distribution across different investor categories and provides adequate opportunity for retail participation in the Oswal Pumps IPO.
But who’s managing this massive IPO? Let’s find out…
Oswal Pumps IPO Lead Managers and Registrar Details
Book Running Lead Managers:
The Oswal Pumps IPO is managed by a consortium of top investment banks:
- IIFL Capital Services Limited
- Axis Capital Limited
- CLSA India Private Limited
- JM Financial Limited
- Nuvama Wealth Management Limited
Registrar Information:
MUFG Intime India Private Limited (Link Intime)
- Phone: +91-22-4918 6270
- Email: oswalpumps.ipo@linkintime.co.in
- Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Now, let’s dive into the company’s business model and growth story…
About Oswal Pumps Limited: Business Model and Operations
Company Background:
Incorporated in 2003, Oswal Pumps Limited has evolved into a comprehensive manufacturer and distributor of pumps with a strong presence across India and international markets.
Product Portfolio:
- Solar Pumps – Catering to renewable energy segment
- Submersible Pumps – For deep water applications
- Monoblock Pumps – Single-stage centrifugal pumps
- Pressure Pumps – High-pressure applications
- Sewage Pumps – Wastewater management
- Electric Motors – Supporting products
- Submersible Winding Wires & Cables
- Electric Panels – Control systems
Key Business Highlights:
Government Scheme Participation:
- 26,270 turnkey solar pumping systems executed under PM-KUSUM Scheme
- Coverage across Haryana, Rajasthan, Uttar Pradesh, and Maharashtra
Manufacturing Infrastructure:
- Manufacturing facility in Karnal, Haryana
- Total land area: 41,076 square meters
Distribution Network Growth:
- 2022: 473 distributors
- 2024: 636 distributors
- Growth rate: 34.5% expansion in 2 years
International Presence:
- Exports to 17 countries across Asia-Pacific, Middle East, and North Africa
- Export period: April 2021 to March 2024
Human Resources:
- 164 employees as of March 31, 2024
These operational metrics look impressive, but what about the financials? Let’s analyze…
Oswal Pumps IPO Financial Analysis: Revenue, Profit, and Growth Trends
Consolidated Financial Performance:
| Financial Metric | Dec 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|
| Total Assets (₹ Cr) | 1,096.01 | 511.28 | 252.30 | 221.84 |
| Revenue (₹ Cr) | 1,067.34 | 761.23 | 387.47 | 361.11 |
| Profit After Tax (₹ Cr) | 216.71 | 97.67 | 34.20 | 16.93 |
| Net Worth (₹ Cr) | 378.80 | 160.17 | 59.97 | 24.57 |
| Total Borrowing (₹ Cr) | 346.30 | 75.42 | 59.28 | 87.54 |
Growth Analysis:
Revenue Growth:
- 2022-2024: 361.11 Cr to 761.23 Cr = 110.8% growth
- 2024 (9 months): 1,067.34 Cr = 40.2% increase from full year 2024
Profitability Improvement:
- PAT Growth (2022-2024): 16.93 Cr to 97.67 Cr = 477% increase
- PAT Margin: 12.83% (impressive for manufacturing sector)
These numbers are remarkable, but let’s dive deeper into key performance indicators…
Key Performance Indicators (KPIs) and Valuation Metrics
Oswal Pumps IPO Key Ratios:
| KPI | Value | Analysis |
|---|---|---|
| ROCE | 81.85% | Excellent return on capital employed |
| Debt/Equity Ratio | 0.42 | Moderate debt levels |
| Return on Net Worth | 88.73% | Outstanding profitability |
| PAT Margin | 12.83% | Strong profit margins |
| Price to Book Value | 38.14 | Premium valuation |
Earnings Per Share Analysis:
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 9.82 | 25.35 |
| P/E Ratio | 62.54 | 24.22 |
Market Capitalization:
The Oswal Pumps IPO will result in a market capitalization of ₹6,998.21 crores post-listing.
These metrics reveal both strengths and concerns. But how will the company use the IPO proceeds?
Objects of Oswal Pumps IPO: Fund Utilization Plan
The company plans to utilize the ₹890 crores fresh issue proceeds as follows:
| S.No. | Purpose | Amount (₹ Cr) | Percentage |
|---|---|---|---|
| 1 | Capital expenditure funding | 89.86 | 10.1% |
| 2 | Investment in Oswal Solar (new manufacturing units) | 272.76 | 30.6% |
| 3 | Debt repayment (Company) | 280.00 | 31.4% |
| 4 | Investment in Oswal Solar (debt repayment) | 31.00 | 3.5% |
| 5 | General corporate purposes | Balance | 24.4% |
Strategic Analysis:
- Growth Focus: 40.7% allocated to expansion and new manufacturing
- Financial Optimization: 34.9% for debt reduction
- Flexibility: 24.4% for general corporate needs
This allocation suggests a balanced approach between growth and financial prudence. But what are the risks?
Oswal Pumps IPO Investment Risks and Considerations
Key Risk Factors:
1. High Valuation Concerns:
- Pre-IPO P/E of 62.54x indicates premium pricing
- Price-to-Book ratio of 38.14x suggests overvaluation
2. Debt Increase:
- Total borrowings jumped from ₹75.42 Cr to ₹346.30 Cr
- Debt-to-equity ratio increased to 0.42
3. Market Competition:
- Intense competition in pump manufacturing sector
- Presence of established players like Kirloskar, Crompton
4. Sector Cyclicality:
- Agricultural pump demand depends on monsoon patterns
- Industrial demand linked to economic cycles
Positive Factors:
1. Government Support:
- Strong participation in PM-KUSUM scheme
- Solar pump segment growth potential
2. Financial Performance:
- Consistent revenue and profit growth
- Strong return ratios (ROCE: 81.85%, RONW: 88.73%)
3. Market Expansion:
- Growing distributor network
- International market presence
Given these factors, should you invest? Let’s explore investment strategies…
How to Apply for Oswal Pumps IPO: Step-by-Step Guide
Method 1: Through Online Broker Platforms
Apply via Zerodha (Free Demat Account):
- Open Zerodha Account: Get Free Trading and Demat Account on Zerodha
- Log into Zerodha Console
- Navigate to IPO section
- Select “Oswal Pumps IPO”
- Enter bid quantity and price (₹614 recommended)
- Confirm UPI mandate
- Complete application
Apply via Dhan (Free Demat Account):
- Open Dhan Account: Free Trading and Demat Account on Dhan
- Access IPO section in Dhan app
- Select Oswal Pumps IPO
- Fill application details
- Make payment through UPI
Method 2: ASBA (Application Supported by Blocked Amount)
- Visit your bank’s net banking portal
- Select IPO/ASBA section
- Apply for Oswal Pumps IPO
- Amount will be blocked until allotment
Method 3: Through Registrar Website
- Visit Link Intime website
- Fill online application form
- Make payment through available modes
Application submitted? Now let’s understand the allotment process…
Oswal Pumps IPO Allotment Process and Listing Details
Allotment Timeline:
- Allotment Date: June 18, 2025 (Wednesday)
- Refund Process: June 19, 2025 (Thursday)
- Share Credit: June 19, 2025 (Thursday)
- Listing Date: June 20, 2025 (Friday)
Allotment Mechanism:
- Retail Category: Lottery-based if oversubscribed
- HNI Category: Proportionate allotment
- QIB Category: Book-building process
Listing Exchanges:
The Oswal Pumps IPO shares will be listed on:
- Bombay Stock Exchange (BSE)
- National Stock Exchange (NSE)
How to Check Allotment Status:
- Visit Link Intime website
- Enter PAN number or application number
- Check allotment status
- View number of shares allotted
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Start Your Investment Journey:
Ready for our final verdict on the Oswal Pumps IPO? Here’s our comprehensive analysis…
Oswal Pumps IPO Review: Final Investment Recommendation
Strengths of Oswal Pumps IPO:
✅ Business Fundamentals:
- Strong revenue growth (110.8% over 2 years)
- Excellent profitability ratios (ROCE: 81.85%)
- Diversified product portfolio
- Government scheme participation advantage
✅ Market Position:
- Growing distributor network (34.5% expansion)
- International market presence (17 countries)
- Solar pump segment exposure (future growth driver)
✅ Financial Health:
- Consistent profit growth (477% increase in PAT)
- Strong cash generation capabilities
- Reasonable debt levels (D/E: 0.42)
Concerns About Oswal Pumps IPO:
⚠️ Valuation Concerns:
- High pre-IPO P/E ratio (62.54x)
- Premium Price-to-Book ratio (38.14x)
- Market cap of ₹6,998 Cr appears stretched
⚠️ Market Risks:
- Cyclical nature of pump industry
- Dependence on agricultural and industrial sectors
- Competition from established players
Investment Strategy Recommendations:
For Conservative Investors:
- Avoid at current valuation levels
- Wait for post-listing correction
- Consider entry at 15-20% discount to issue price
For Aggressive Investors:
- Limited allocation (1-2 lots maximum)
- Apply at cut-off price (₹614)
- Plan partial exit on listing day if premium is substantial
For Long-term Investors:
- Small allocation acceptable if believing in solar pump growth story
- Hold for 2-3 years minimum
- Monitor quarterly results closely
But wait – there’s one more crucial aspect to consider…
Frequently Asked Questions (FAQs) About Oswal Pumps IPO
The Oswal Pumps IPO price band is set between ₹584 to ₹614 per share. Investors are recommended to bid at the cut-off price of ₹614 to avoid rejection due to oversubscription.
The Oswal Pumps IPO opens on June 13, 2025 (Friday) and closes on June 17, 2025 (Tuesday). The subscription timing is from 10:00 AM to 5:00 PM on each day.
The minimum investment for retail investors in Oswal Pumps IPO is ₹14,736 (24 shares at cut-off price of ₹614). The lot size is 24 shares.
You can apply for Oswal Pumps IPO through:
- Online broker platforms (Zerodha, Dhan, etc.)
- Bank’s ASBA facility
- Registrar’s website (Link Intime)
- Mobile banking apps with IPO facility
Oswal Pumps IPO allotment is expected to be finalized on June 18, 2025 (Wednesday). Share credit to demat accounts will happen on June 19, 2025.
The tentative listing date for Oswal Pumps IPO is June 20, 2025 (Friday) on both BSE and NSE exchanges.
Based on our analysis, Oswal Pumps IPO shows strong business fundamentals but appears overvalued at current pricing. Conservative investors should wait for better valuations, while aggressive investors can consider small allocations.
Key risks include high valuation (P/E: 62.54x), cyclical business nature, market competition, and dependence on agricultural/industrial demand cycles.
Retail investors can invest a maximum of ₹1,91,568 (13 lots = 312 shares) in Oswal Pumps IPO.
The market capitalization of Oswal Pumps after the IPO will be approximately ₹6,998.21 crores.
Conclusion: Making the Right Decision for Oswal Pumps IPO
As we conclude this comprehensive analysis of the Oswal Pumps IPO, it’s clear that this offering presents both compelling opportunities and significant challenges for investors.
The Bottom Line:
The Oswal Pumps IPO showcases a company with impressive financial growth, strong market presence, and exposure to the promising solar pump segment. With revenue growing at 110.8% over two years and exceptional return ratios (ROCE: 81.85%, RONW: 88.73%), the company demonstrates solid operational excellence.
However, the premium valuation remains a major concern. At a pre-IPO P/E of 62.54x and a market cap of nearly ₹7,000 crores, the current pricing leaves little room for error and may not justify the risk-reward ratio for conservative investors.
Our Final Recommendation:
Selective Participation with Caution
- Apply with small allocation if you believe in the long-term solar pump growth story
- Bid at cut-off price (₹614) to maximize allotment chances
- Plan exit strategy if listing premium exceeds 25-30%
- Monitor post-listing performance for better entry opportunities
Key Takeaway:
While the Oswal Pumps IPO offers exposure to a growing company in an essential sector, the current valuation demands careful consideration. Smart investors should balance their enthusiasm with prudent risk management.
Remember: IPO investing requires thorough research, risk assessment, and portfolio diversification. This Oswal Pumps IPO analysis provides comprehensive insights, but your investment decision should align with your risk tolerance and financial goals.
Ready to make your investment decision? The Oswal Pumps IPO subscription window is opening soon – June 13, 2025. Make sure your demat account is ready and your investment strategy is clear.
Stay informed, invest wisely, and remember – successful investing is a marathon, not a sprint.
Disclaimer: This analysis is for educational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making investment decisions. IPO investments carry market risks, and past performance does not guarantee future results.
