India’s rapidly expanding solar pump manufacturer, Oswal Pumps Limited, has successfully concluded its ₹1,387 crore initial public offering (IPO) with strong investor interest. Let’s dive into the key highlights, investor sentiment, business strengths, and what lies ahead.
1. IPO Overview & Pricing
- Issue Size: ₹1,387 crore — comprising ₹890 crore fresh equity and ₹497 crore offer-for-sale by promoter Vivek Gupta
- Price Band: ₹584–₹614 per share; minimum bid 24 shares
- Anchor Investors: Subscribed ~67.8 lakh shares at ₹614/share, raising ₹416 crore from marquee funds such as ICICI Prudential, Societe Generale, and Kotak MF
2. Subscription Journey: A Cliffhanger Finish
- Day 1: Subscribed ₹0.65× (~42%), at the lower end of expectations
- Day 2: Subscription picked up—1.08× overall, driven by retail and non-institutional investors, despite modest QIB interest
- Day 3: Final day surge led to 3.05× total IPO subscription
- By Category:
- NIIs: nearly 10×
- Retail: ~1.6×
- QIBs remained subdued (~0.3×)
- By Category:
3. Grey Market Premium (GMP): Earning Power Recalibrated
- On the final day, GMP settled at ₹55–60, suggesting a listing premium of 9–10%
- This narrowed from ₹85 earlier in the week—highlighting cautious optimism and recalibration by investors .
4. Deep Dive: Oswal Pumps’ Business & Growth Strategy
- Operations: Manufacturing solar and conventional pumps, electric motors, and solar modules at its Karnal facilities and marketing through 925 distribution partners and 248 retail stores (“Oswal Shopee”)
- Financial Performance:
- FY22–FY24 revenues surged from ₹360 cr to ₹759 cr; PAT jumped from ₹17 cr to ₹98 cr
- 9MFY25: ₹1,066 cr revenue and ₹217 cr net profit—showing strong growth momentum
- Valuations: At ₹614, shares valued at ~24× FY25 P/E with EV/EBITDA around 16–16.5×—cheaper than peers trading 33–60×
- Growth Drivers:
- PM-KUSUM scheme—holding ~38% market share in solar pump installations.
- Global exports across 22 countries
- Vertically integrated manufacturing enhances margins and operational control
5. Analyst & Brokerage Perspective
- Broad consensus to “Subscribe” for long-term investors . SBI Securities, Arihant Capital, Anand Rathi, Mehta Equities, KR Choksey, Marwadi, Ventura, and GoodReturns all passed positive ratings.
- Key positives: strong financials, policy tailwinds via government schemes, efficient integration.
- Identified Risks: dependence on subsidies, lengthy receivables (~140–150 days), working capital strain
6. Looking Ahead: Allotment & Listing
- Allotment date set for June 18, with share credits and refunds on June 19
- Listing scheduled for June 20 on both NSE and BSE
7. Strategic Viewpoint & Investor Takeaway
Strengths:
- Leads the solar pump landscape with robust financial metrics.
- Industry exposure aligned with governmental renewable goals.
- Global reach and well-integrated operations.
Risks:
- Institutional interest low—implying less buoyancy on listing day.
- Exposure to policy shifts and high working capital needs.
- GD margin pressure if future premium weakens.
Verdict: With a healthy sub-3× subscription, respectable GMP, and long-term focus, the IPO is well-positioned—especially for growth-focused investors.
| Metric | Value |
|---|---|
| IPO Size | ₹1,387.34 cr |
| Price Band | ₹584–₹614 |
| Anchor Round | ₹416 cr |
| Day 3 Subscription | 3.05× overall (NIIs ~10×) |
| GMP (Final Day) | ₹55–60 (~9–10% listing gain) |
| Valuation P/E | ~24× |
| Revenue Growth FY22–24 | ₹360 cr → ₹759 cr |
| 9MFY25 Revenue | ₹1,066 cr |
| IPO Listing Date | June 20, 2025 |
The Oswal Pumps IPO has concluded strongly, with impressive retail and HNI interest riding on the back of solid fundamentals and sectoral tailwinds.
The moderate GMP tempers expectations a bit, but it still points to a likely listing pop of 9–10%. With a long-term horizon, investors stand to benefit as Oswal Pumps capitalizes on renewable energy trends and expands its manufacturing footprint.
