Oswal Pumps Ltd, a leading manufacturer and distributor of water and solar-powered pumps, has launched its initial public offering (IPO) on Friday, June 13. The mainboard IPO has received a moderate response from investors on Day 1 and is expected to gather momentum over the next two days. The subscription window for the public issue will remain open until Monday, June 17.
IPO Details
The company aims to raise ₹1,387.34 crore through the IPO, which includes a fresh issue of 1.45 crore equity shares worth ₹890 crore and an offer-for-sale (OFS) of 81 lakh shares amounting to ₹497.34 crore. The IPO price band has been fixed at ₹584 to ₹614 per share, and the lot size is 24 shares, requiring a minimum investment of ₹14,016 for retail investors.
The equity shares of Oswal Pumps will be listed on both the BSE and NSE, with listing expected on June 20, and allotment likely on June 18. The book-running lead managers for the IPO include IIFL Capital Services, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management, while Link Intime India is acting as the IPO registrar.
Subscription Status (As of June 13)
According to data released by the NSE, the IPO was subscribed 42% overall on Day 1:
• Retail investors: 45% subscribed
• Non-Institutional Investors (NII): 79% subscribed
• Qualified Institutional Buyers (QIB): 8% subscribed
With two days left in the bidding process, the IPO is expected to see higher traction, especially from institutional investors.
Oswal Pumps IPO GMP Today
In the grey market, Oswal Pumps shares are trading at a premium of ₹40 per share, indicating a grey market price (GMP) of ₹654 per share. This reflects a 6.51% premium over the upper issue price of ₹614, suggesting moderate listing gains.
Financial Performance and Valuation
Oswal Pumps has emerged as the fastest-growing vertically integrated solar pump manufacturer in India, with a revenue CAGR of 44%, EBITDA CAGR of 103%, and PAT CAGR of 134% from FY22 to 9MFY25. The company has a strong order book worth ₹1,100 crore and a bid pipeline of ₹3,200 crore, highlighting strong future growth prospects.
At the upper end of the price band, the IPO is valued at a post-issue P/E of 24.2x and an EV/EBITDA multiple of 16.4x, which is considered attractive compared to peers like Shakti Pumps, which trade at a P/E of around 42x.
Expert Opinions
Nirmal Bang has rated the IPO a “Subscribe”, citing strong fundamentals, attractive valuations, and positive industry tailwinds.
Rajan Shinde, Research Analyst at Mehta Equities, also recommends subscribing, particularly for long-term investors. He emphasizes the company’s key position as a supplier of solar-powered agricultural pumps under the PM-KUSUM scheme, adding that Oswal Pumps is well placed to benefit from the growing focus on sustainable and energy-efficient irrigation solutions.
