Oswal Pumps IPO is listed on NSE at ₹634 price with a 3.26% premium from the issue price

The pump manufacturer and distributor, Oswal Pumps Limited, made a lacklustre debut on the NSE and BSE platforms. After closing its IPO bidding between June 13 - June 17, 2025, the company made its stock market debut on June 20, 2025, at a modest premium to the issue price, delivering moderate returns to investors. This book-building IPO raised ₹1,387.34 crore with a solid subscription of 34.42 times, reflecting reasonable investor confidence for the pump manufacturing sector as the company aims to expand manufacturing capabilities and strengthen its position in the solar pumps segment.

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Oswal Pumps IPO Listing Details

Oswal Pumps Limited launched its IPO through the book-building process, and the Oswal Pumps stock price was set at ₹614 per share. The minimum investment required was 24 shares costing ₹14,736. The IPO received a solid response with an overall subscription of 34.42 times - retail segment at 3.60 times, QIB at 88.08 times, and NII at 36.70 times by the final day of bidding, indicating good investor interest across categories. Oswal Pumps' share price is listed at ₹634 on NSE and ₹632 on BSE, offering a 3.26% and 2.93% premium, respectively, from the issue price. Oswal Pumps' stock price debut reflects moderate market sentiment and a cautious investor approach towards the company.

Listing Price: The Oswal Pumps share price opened at ₹634 on NSE and ₹632 on BSE on June 20, 2025, representing premiums of 3.26% and 2.93% respectively from the issue price of ₹614, delivering modest gains for investors at listing.

First-Day Trading Performance Outlook

Oswal Pumps IPO commenced trading on NSE and BSE on June 20, 2025, witnessing a lacklustre stock market debut. The Oswal Pumps share price opened at ₹634 on NSE and ₹632 on BSE, marking modest premiums from its IPO price of ₹614, delivering moderate returns to investors at listing. However, the listing came below grey market estimates, where unlisted shares were quoted at around ₹655 per share, reflecting a grey market premium of ₹41 or 6.68% over the issue price. The company entered the market with established operations in pump manufacturing and distribution, serving domestic, agricultural, and industrial applications with a growing network of 636 distributors across India.

Growth Drivers and Challenges

Oswal Pumps presents growth potential with its leading position in the solar pumps segment, diverse product portfolio catering to multiple applications, and expanding manufacturing capabilities

Growth Drivers:

• Solar Pumps Leadership: Leading player in the solar pumps segment with 26,270 turnkey solar pumping systems executed under the PM-KUSUM Scheme across Haryana, Rajasthan, Uttar Pradesh, and Maharashtra
• Diverse Product Portfolio: Comprehensive range including solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires & cables, and electric panels
• Distributor Network Expansion: Growing network from 473 distributors in 2022 to 636 distributors in 2024, demonstrating market penetration and distribution strength
• Export Operations: International presence across 17 countries in Asia-Pacific, Middle East, and North Africa regions, providing revenue diversification opportunities
• Financial Performance: Exceptional revenue growth and profitability improvement with a shift towards the high-margin solar pump segment, boosting bottom lines

Challenges:

• Aggressive Valuation Concerns: Analysts are noting aggressive pricing of the issue based on financial data, suggesting potential overvaluation risks in current market conditions
• Increasing Competition: Solar pumps segment getting crowded with many corporationscorporates entering the field, intensifying competitive pressure and margin challenges
• Government Policy Dependency: Heavy reliance on government schemes like PM-KUSUM for solar pump demand, creating dependency on policy continuity and support
• Market Saturation Risks: Potential market saturation in the solar pumps segment as more players enter, affecting growth prospects and market share

Utilisation of IPO Proceeds

Oswal Pumps plans to utilise the ₹1,387.34 crore raised from the combined fresh issue and offer for sale to strengthen its manufacturing capabilities and reduce debt burden.

• Capital Expenditure: ₹89.86 crore allocated for funding certain capital expenditure of the company to enhance operational capabilities and infrastructure.
• Subsidiary Investment: ₹272.76 crore designated for investment in wholly-owned subsidiary Oswal Solar for setting up new manufacturing units at Karnal, Haryana, to expand production capacity.
• Debt Repayment: ₹280.00 crore earmarked for pre-payment/repayment of certain outstanding borrowings availed by the company to achieve debt-free status post IPO.
• Subsidiary Debt Repayment: ₹31.00 crore allocated for investment in Oswal Solar for repayment/prepayment of certain outstanding borrowings availed by the subsidiary.
• General Corporate Purposes: Remaining funds allocated for general business needs and corporate initiatives to support strategic growth plans.

Financial Performance of Oswal Pumps IPO

Oswal Pumps has shown exceptional financial performance with a remarkable growth trajectory:

• Revenue: ₹1,067.34 crore for nine months ended December 2024, demonstrating strong business momentum with significant growth from ₹761.23 crore in FY24, reflecting robust demand for pump products, especially in the inthe  solar segment.
• Net Profit: ₹216.71 crore for nine months ended December 2024, showing an outstanding growth trajectory from ₹97.67 crore in FY24, showcasing improved operational efficiency and margin expansion through focus on solar pumps.
• Financial Metrics: The company shows exceptional ROCE of 81.85% and impressive RoNW of 88.73%, with a manageable debt-to-equity ratio of 0.42, indicating a strong financial structure and efficient capital utilisation.
   

Oswal Pumps offers a solid investment opportunity in the pump manufacturing sector with its leading position in solar pumps, diverse product portfolio, and exceptional financial performance. While it faces challenges like aggressive valuation concerns, increasing competition, and government policy dependency, its manufacturing expertise and expansion plans position it strategically for capitalising on India's growing demand for pumps driven by renewable energy adoption and infrastructure development. The modest listing performance with premiums of 3.26% and 2.93% reflects cautious investor sentiment towards the company's business model and growth prospects in the competitive pump manufacturing market.