Oswal Pumps Limited, a leading manufacturer of solar and submersible pumps in India, is set to launch its ₹1,387.34 crore IPO between June 13-17, 2025. The offering includes a fresh issue and an offer for sale, aimed at capacity expansion, debt repayment, and capitalising on the government-driven solar pump market opportunity.
Table of Contents
- About Oswal Pumps Limited
- Oswal Pumps IPO Details
- Business Model and Product Portfolio
- Industry Overview and Growth Drivers
- Oswal Pumps Financial Performance
- Valuation and Peer Comparison
- Strengths and Risk Factors
- IPO Grey Market Premium (GMP) Trend
- Final Investment Verdict: Should You Invest?
- Frequently Asked Questions (FAQs)
Oswal Pumps Limited is a well-established player in India’s water pump manufacturing industry, particularly focused on solar and submersible solutions. The company has steadily built its presence in both product manufacturing and turnkey solar system projects across the country.
- Founded in 2003, the company is headquartered in Karnal, Haryana.
- Specialises in solar water pumping systems, submersible pumps, and allied equipment.
- Actively participates in the PM Kusum Scheme, providing government-backed solar water pumping solutions.
- Successfully delivered 26,270+ solar projects across India till date.
- Operates a vertically integrated manufacturing facility with in-house capabilities for motors, cables, and panels.
- Maintains a robust pan-India network of 925+ dealers and distributors, ensuring widespread market reach.
Wrap-up: A niche player in a growing, government-supported sector.
Oswal Pumps Limited is set to launch its ₹1,387 crore IPO in June 2025, offering a mix of fresh equity and an offer for sale.
/content-assets/dae96d6679724fa898529ce899475e1a.png)
The company aims to utilise the proceeds for capacity expansion, working capital, and debt repayment. Investors can participate in this mid-sized IPO through the NSE and the BSE.
/content-assets/4e589d288b2e4fcf8b4bea716c7529d9.png)
Wrap-up: Attractive issue size with retail allocation of 35%.
Oswal Pumps operates a vertically integrated business, combining manufacturing with turnkey project execution under various government-backed solar and infrastructure schemes. The company caters to agriculture, domestic, and industrial water management needs through a wide product portfolio.
Key highlights of its business model:
- Manufactures solar pumps, grid-connected submersible pumps, monoblock pumps, and accessories.
- All products are certified with ISI, BEE, and ISO standards, ensuring quality and efficiency.
- Revenue comes from a mix of product sales and EPC (Engineering, Procurement & Construction) contracts, especially under the PM Kusum scheme.
Wrap-up: A diversified and quality-compliant portfolio positions Oswal Pumps well in India’s evolving water infrastructure and solar solutions market.
India’s pump and water infrastructure industry is expanding rapidly, supported by government schemes and a push for renewable energy solutions in rural and agricultural sectors. Solar-powered water management systems are emerging as a preferred option, creating steady demand for players like Oswal Pumps.
Key industry drivers include:
- India’s overall pump market is growing at a 10-13% CAGR, fuelled by agriculture, irrigation, and infrastructure requirements.
- Government initiatives like PM Kusum Yojana and solar pump subsidies are boosting adoption of renewable water solutions.
- Increasing rural electrification and irrigation infrastructure investments are expected to drive sustained long-term demand.
Wrap-up: A promising sector with policy support and rising rural demand provides a strong runway for solar pump manufacturers.
For a deeper understanding of how major players are scaling up in the renewable sector, explore our detailed analysis of Tata Power renewable sector ambitious solar and wind expansion plans.
Oswal Pumps has delivered a stellar financial performance in recent years, driven by strong demand and operational efficiency. Revenue and profits have witnessed sharp growth, supported by healthy return ratios and a conservative debt profile.
|
Financial Year
|
Revenue (₹ crore)
|
PAT (₹ crore)
|
|
FY 2024
|
761.23
|
97.67
|
|
9M FY 2025
|
1,067.34
|
216.71 (est.)
|
- Revenue nearly doubled in FY 2024; PAT jumped 186% YoY.
- Healthy return ratios: FY24 RoNW 88.7%, ROCE 81.9%.
- Low debt-equity of 0.42; IPO proceeds to further reduce debt.
Wrap-up: A robust financial track record with improving profitability and healthy return metrics.
Oswal Pumps is entering the market at a steep valuation of 59-62× TTM earnings, notably higher than listed peers. However, it boasts a significantly superior ROCE of 81.9%, indicating efficient capital deployment. The company’s debt-equity ratio of 0.42 is modest but higher than rivals.
|
Company
|
P/E (TTM)
|
ROCE (%)
|
|
Oswal Pumps
|
59–62×
|
81.90%
|
|
Shakti Pumps
|
33.5×
|
17.50%
|
|
Kirloskar Bros
|
38.7×
|
21.30%
|
- IPO priced at premium valuations reflecting its growth and high margins.
- Better profitability metrics than listed peers.
Wrap-up: High valuation justified by superior growth and return ratios.
Strengths
Oswal Pumps has carved a strong position in India’s solar and submersible pump industry, leveraging operational efficiency and policy tailwinds.
- Market leader in solar pumping solutions with a notable presence under PM Kusum Yojana.
- Operates a vertically integrated manufacturing facility, ensuring quality control and cost efficiencies.
- Benefits from a strong, government-backed demand pipeline, driven by renewable energy and rural electrification schemes.
Wrap-up: A dominant niche player well-positioned to ride policy-led and sectoral growth.
Risk Factors
While Oswal Pumps shows strong growth, investors must weigh a few operational and industry-related challenges.
- Working capital-heavy operations due to inventory and receivables management in the EPC and product businesses.
- Premium IPO pricing with valuations higher than peers like Shakti Pumps and Kirloskar Bros.
- Policy dependency with a large revenue share linked to PM Kusum subsidies and government projects.
- Faces competition from established players in the pump and renewable solutions segment.
Wrap-up: Balanced risk-reward profile, better suited for long-term investors aligned with India’s renewable energy story.
The grey market premium offers an early hint of market sentiment ahead of listing.
- Current GMP stands at ₹33 as of June 9, 2025.
- Has been fluctuating between ₹28–₹38 since the IPO announcement.
- Reflects moderate enthusiasm among informal traders and investors.
Wrap-up: Suggests a modest listing premium, the issue isn’t overheated but holds steady secondary market interest.
Watch our expert discussion on solar investment opportunities to gain a visual and in-depth perspective.
Oswal Pumps offers a niche, fast-growing business model with government-backed demand tailwinds and improving financials. But investors should weigh the premium pricing and sectoral risks carefully.
Positives:
- Fast-growing, profitable business with a dominant position in solar pumps.
- Attractive government policy support through schemes like PM Kusum.
- Debt reduction and capacity expansion planned from IPO proceeds.
Wrap-up: Ideal for long-term investors comfortable with policy-linked businesses and premium valuations. Conservative investors may prefer to wait for post-listing stability.
Negatives:
- High working capital requirements, impacting cash flows.
- Elevated valuation multiples compared to sector peers like Shakti Pumps and Kirloskar Brothers.
Verdict: Investors with a high-risk appetite and a long-term outlook can consider subscribing, ideally at the lower end of the price band.
Cautious investors may prefer to wait for post-listing stability before taking a position.
Interested in investing? Visit the Oswal Pumps IPO page for the latest updates and subscription details.
Q1: What are the key dates for the Oswal Pumps Limited IPO?
The IPO is scheduled to open on June 13, 2025, and close on June 17, 2025. The expected listing date is June 20, 2025.
Q2: What is Oswal Pumps Limited's primary business activity?
Oswal Pumps Limited primarily manufactures solar-powered and grid-connected pumps and electric motors, serving the agriculture, residential, and industrial sectors.
Q3: Who are the main promoters of Oswal Pumps Limited?
The promoters include Vivek Gupta (also Chairman and Managing Director), Amulya Gupta, Shivam Gupta, Ess Aar Corporate Services Private Limited, Shorya Trading Company Private Limited, and Singh Engcon Private Limited.
Q4: How much of the IPO is reserved for retail investors?
Not more than 35% of the issue is allocated to Retail Individual Bidders.
Q7: How has Oswal Pumps Limited's revenue performed recently?
The company's revenue nearly doubled in FY2024, increasing by 97% to ₹758.6 crore. It further surged to ₹1,067.34 crore for the nine months ended December 31, 2024.