Oswal Pumps Limited, one of India’s fastest-growing manufacturers of solar pumps, is set to launch its initial public offer (IPO) on June 13, 2025. The company has fixed the price band for its shares between Rs. 584 and Rs. 614 each. This IPO is a significant step for Oswal Pumps, which has seen impressive growth over the past three financial years. The company reported a compound annual growth rate (CAGR) of 45.07% in revenue from the financial year 2022 to 2024.
The IPO will remain open for subscription until June 17, 2025. Investors can bid for a minimum of 24 equity shares, and thereafter in multiples of 24 shares. The total issue size could reach Rs. 890 crores, comprising a mix of new shares and an offer for sale of 81,00,000 equity shares by Vivek Gupta, a key stakeholder in the company.
Oswal Pumps plans to use the funds raised from this IPO for various purposes. These include financing certain capital expenditures of Rs. 89.86 crores, establishing new manufacturing units in Karnal, Haryana, with an estimated cost of Rs. 272.76 crores, and repaying certain outstanding debts up to Rs. 280 crores. The company also aims to invest Rs. 31 crores in its wholly-owned subsidiary, Oswal Solar, to support its growth.
Founded in 2003, Oswal Pumps initially manufactured low-speed monoblock pumps. Over the years, it has expanded its product line to include grid-connected high-speed monoblock pumps, submersible pumps, and electric motors. The company’s products are marketed under the ‘Oswal’ brand and cater to various sectors, including agriculture, residential, and industrial markets.
Oswal Pumps is not just focused on manufacturing but also actively participates in government initiatives. The company has started supplying pumps to players involved in the PM KUSUM scheme, which aims to promote solar energy in agriculture. By December 31, 2024, Oswal Pumps secured orders for 38,132 turnkey solar pumping systems under this scheme across several states, including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
The company operates a significant manufacturing facility in Karnal, which covers an area of 41,076 square meters. This facility is one of the largest single-site manufacturing plants in India dedicated to pump production. It is equipped with modern machinery to ensure high-quality production.
Oswal Pumps has received several certifications, including ISO 9001:2015 and ISI and BEE certifications for its products. The company has a vast distribution network, with 925 distributors as of December 31, 2024, ensuring that its products are accessible to a wide range of customers.
In terms of financial performance, Oswal Pumps has shown remarkable growth. The revenue increased from Rs. 385.04 crores in the financial year 2023 to Rs. 758.57 crores in the financial year 2024, marking a 97.01% growth. The profit for the financial year 2023 was Rs. 34.19 crores, which increased to Rs. 97.66 crores in 2024.
Oswal Pumps Limited has appointed several leading financial institutions as book-running lead managers for this IPO, including IIFL Capital Services, Axis Capital, and JM Financial. The registrar for the issue will be MUFG Intime India. The offer will be conducted through a book-building process, with allocations for institutional buyers, non-institutional investors, and retail individual bidders.
Investors looking for opportunities in the solar pump sector may find this IPO appealing, given Oswal’s rapid growth and commitment to sustainable energy solutions in agriculture. The upcoming IPO is expected to attract significant interest from both retail and institutional investors, marking another milestone in the company’s journey towards expansion and innovation in the solar pump industry.
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