Here’s a comprehensive breakdown of the Oswal Pumps Limited IPO set to open June 13, 2025:
IPO Timeline
- Opening Date: June 13, 2025
- Closing Date: June 17, 2025
- Allotment Date: Jun 18, 2025
- Initiation of Refunds: Jun 19, 2025
- Credit of Shares to Demat: Jun 19, 2025
- Expected Listing Date: June 20, 2025 on both BSE & NSE
Oswal Pumps Limited IPO Details
- Price Band: ₹131 to ₹138 per share
- Face Value: ₹1 per share
- Total Issue Size: Approx ₹1,000 crore fresh issue plus an Offer For Sale (OFS)
- Offer for Sale: 81,00,000 shares of ₹1
- Lot Size: 1,000 shares
- Lead Managers: IIFL, Axis, CLSA, JM, Nuvama
- Registrar: MUFG Intime India Pvt Ltd
Promoters of Oswal Pumps Limited
Oswal Pumps has a promoter group ownership of 97.83% of the company’s total paid-up capital, composed of both corporate entities and individuals
Main Promoters
1) Shorya Trading Company Pvt Ltd
- Shares held: 54,521,550 (≈ 54.81%)
- Corporate promoter.
2) Vivek Gupta (Managing Director)
- Shares held: 25,211,000 (≈ 25.34%)
- Notably, 1.13 crore shares are being offered through an Offer For Sale (OFS), enabling part liquidation of his holdings
3) Ess Aar Corporate Services Pvt Ltd
- Shares held: 17,590,750 (≈ 17.68%)
- Corporate promoter.
Other Promoter Group Members
These individuals/entities jointly hold about 2.17% of the equity :
- Radhika Gupta – 1,700,000 shares (~1.71%)
- Padam Sain Gupta – 425,000 shares (~0.42%)
- Padam Sain Gupta HUF – 17,000 shares (~0.02%)
- Prem Lata – 17,000 shares (~0.02%)
- Total Shares Held by Promoters: 99,482,300 (≈ 97.83%) + Others = 100% of the company’s paid-up capital
Management Roles
- Vivek Gupta: Managing Director, appointed March 4, 2022
- Padam Sain Gupta: Director since August 29, 2019.
- Other key directors from the promoter family include Sachin Gupta, Amulya Gupta, Shivam Gupta, and Vishal Goela
Key Takeaways
- The company is highly promoter-controlled, with nearly 98% ownership by the promoter group.
- The OFS by Vivek Gupta indicates a partial divestment, which is common in large IPOs to enhance public float.
- The promoter group combines strong family involvement with both individual and corporate ownership, which may influence governance, structural decisions, and investor confidence.
Quick Snapshot
| Promoter Entity | Role | Shares (~%) |
|---|---|---|
| Shorya Trading Co. Pvt Ltd | Corporate promoter | 54.81% |
| Vivek Gupta | Managing Director & promoter | 25.34% (‑ OFS 11.3M) |
| Ess Aar Corporate Services Pvt Ltd | Corporate promoter | 17.68% |
| Radhika Gupta, Padam Sain Gupta & Others | Individuals & HUF | 2.17% total |
GMP of Oswal Pumps Limited IPO
The Grey Market Premium (GMP) for Oswal Pumps Limited IPO is currently being quoted at approximately ₹35 per share, according to a post by the IPO Investor Academy on X (formerly Twitter) dated June 8, 2025
What This Means
- A GMP of ₹35 implies that the unofficial market is valuing each share to list at around ₹131–138 (issue band) + ₹35 = ₹166–173.
- It signals strong early investor demand and can hint at a possible listing premium—but it’s not a guaranteed indicator of listing performance.
Oswal Pumps Limited IPO Lot Size
Based on IPO comparison data (e.g. vs Borana Weaves), Oswal Pumps Limited has a market lot of 69 shares per application
Lot Size Summary Table
| Investor Category | Minimum Lots | Shares per Lot | Minimum Shares | Amount at ₹138* |
|---|---|---|---|---|
| Retail Individual | 1 | 69 | 69 | ₹ 9,522 |
| Maximum (Retail) | 13 | 897 | 897 | ₹ 123,786 |
Oswal Pumps Limited IPO Promoter Holding
| Share Holding Pre Issue | 99.88% |
| Share Holding Post Issue | – |
About Oswal Pumps Limited
Company Overview
- Founded in July 2003 and headquartered in Karnal, Haryana, Oswal Pumps became a publicly listed company in 2025
- It is a leading vertically integrated pump manufacturer, specializing in solar & grid-connected submersible pumps, monoblock pumps, motors, solar modules, and accessories .
| Attribute | Details |
|---|---|
| Founded | July 2003 |
| HQ | Karnal, Haryana |
| Facilities | 41–45k m²; fully integrated units |
| Product Range | Submersible & monoblock pumps, motors, solar pumps |
| Certifications | ISO 9001:2015, ISI, BEE, CE |
| Awards | National Udyog Rattan, Bhartiya Udyog Rattan |
| Exports | 17–20 countries |
| Distribution Network | 2,000+ dealers |
| Latest Revenue | ₹495 Cr (9M 2023–24) |
| Margins | ~21.5% (FY24) |
| Financial Health | Gearing ~0.3–0.5×, ROCE ~70% |
| Strategic Advantage | PM-KUSUM scheme participation |
Manufacturing & Infrastructure
- Operates two major facilities near New Delhi covering 41,000–45,000 m², fully integrated with in-house units: aluminium die-casting, stamping, casting, injection moulding, cable, winding wire, SS pipe, thrust bearing, packaging, and more.
- Equipped with high-tech CNC, CAD/CAM, ERP systems, and production capacity of around 300,000 pumps and 100,000 motors annually.
Certifications & Awards
- ISO 9001:2015 certified; products carry ISI, BEE, and CE marks.
- Honored with National Udyog Rattan Award and Bhartiya Udyog Rattan Award for its contribution to national development.
- Also recognized as a “Star Export House” for its export achievements.
Market Footprint
- A network of 2,000+ distributors/dealers across India, servicing domestic, agricultural, commercial, and industrial sectors.
- Exported to 17–20 countries between April 2021 and March 2024, including Australia, Bangladesh, Cyprus, and the UAE.
Oswal Pumps Limited Financial Information
Here’s a detailed financial overview of Oswal Pumps Limited based on its Draft Red Herring Prospectus and related disclosures:
| Metric | 2021–2022 | 2022–2023 | 2023–2024 |
|---|---|---|---|
| Revenue from Operations | ₹360.38 crore | ₹385.040 crore | ₹758.57 crore |
| Total Income | ₹361.11¹ crore | ₹387.47¹ crore | ₹761.23¹ crore |
| EBITDA | ₹38.52 crore | ₹57.82 crore | ₹150.12 crore |
| EBITDA Margin (%) | – | – | ₹19.8% |
| Profit After Tax (PAT) | ₹16.93 crore | ₹34.20 crore | ₹97.67 crore |
| EPS – Basic & Diluted (₹) | ₹1.70 | ₹3.44 | ₹9.82 |
| Net Worth (Shareholder’s Equity at year‑end) | ₹24.57 crore | ₹59.97 crore | ₹160.17 crore |
| Total Borrowings | ₹87.54 crore | ₹59.28 crore | ₹75.42 crore |
Additional Financial Insights
- Revenue Growth: Revenue nearly doubled, with a jump from ₹385 Cr to ₹758 Cr in 20 24, representing ~97% YoY growth
- Profit Surge: PAT surged ~186% from ₹34.2 Cr to ₹97.7 Cr in 20 24.
- Margin Expansion: EBITDA margin improved strongly to 19.8% in 2024 from significantly lower levels previously.
- Return Ratios: RoNW reached ~88.7% in 2024, indicating strong capital efficiency.
- Leverage: Borrowings are moderate; gearing stays at ~0.3–0.5×, per rating agency reports.
- Efficiency + Liquidity: Operating cash flow dropped from ₹64.9 Cr (2022) to ₹16.9 Cr (2024), reflecting working-capital intensity
Key Performance Indicator (KPI)
| ROCE | 81.85% |
| Debt/Equity | 0.42 |
| RoNW | 88.73% |
| PAT Margin | 12.83 |
Interpretation & Insights
- Exceptional Growth: Revenue and profit growth in 2024 highlights strong traction, notably driven by solar pump demand under PM-KUSUM.
- Margins: Operating efficiency and scale economies bolstered margins significantly year-over-year.
- High Returns: RoNW & RoCE near 80–90% are exceptionally high, though such metrics warrant scrutiny (e.g., asset base, depreciation, working capital structure).
- Working Capital Pressure: Sharp drop in operating cash suggests heavy investment in inventories and receivables—common in manufacturing linked to government projects.
Objects of the Issue
1) Capital Expenditure
- Funding expansion, modernization & enhancement of the company’s manufacturing capabilities
2) Investment in Wholly‑Owned Subsidiary, Oswal Solar
- To set up a new manufacturing unit in Karnal, Haryana (via debt or equity infusion)
3) Repayment/Pre-Payment of Debt of Oswal Pumps
- Debt reduction from IPO proceeds of the company itself
4) General Corporate Purposes
- To be utilized flexibly for various corporate requirements per company discretion
Strengths of Oswal Pumps Limited IPO
1) Leading Player in Solar-Pump Segment
- One of the largest suppliers under the PM-KUSUM Scheme, with a strong track record in delivering turnkey solar pumping systems.
2) Vertically Integrated Manufacturing Setup
- In-house capabilities spanning die-casting, module production, motors, control units, and assemblies ensure cost control and supply chain efficiency.
3) Robust Financial Performance
- Revenue nearly doubled in FY 24 (~97% YoY), EBITDA surged over 160%, and PAT grew ~186%.
4) Strong Market Reach & Order Visibility
- Extensive distribution (636+ dealers) across key agricultural regions; order book around ₹821 Cr as of July 2024 provides mid-term revenue visibility.
5) Healthy Financial Position
- Low gearing (~0.3–0.5×), high interest coverage (20×+), and strong RoCE (~70%) indicate solid capital efficiency.
Risks of Oswal Pumps Limited IPO
1) Government Scheme Dependence
- A major portion of revenues comes from winning tenders under the PM-KUSUM Scheme. Any policy shift, reduced funding, or lost tender bids could significantly impact earnings.
2) High Solar Segment Exposure
- Over 60% of revenues include turnkey solar pump systems, and about 96% is linked to agriculture—heightening risk from sector swings.
3) Working Capital Intensive Operations
- High current asset days (~200–220 days) due to inventory and receivables, raising reliance on bank credit lines (utilization spiked to ~94% recently).
4) Commodity Price Volatility
- Steel, copper, and solar cell costs are volatile; as observed in rising material expenses (cost-materials ≥80% of expenses in FY 24), margin pressure could follow.
5) Execution and Expansion Risks
- Planned capex (₹419 Cr) and scaling up may not yield expected returns. Disruptions at Karnal facilities—weather, labor, logistics—could delay production and affect cost efficiency
Summary Table: Key Strengths vs Risks
| Strengths | Risks |
|---|---|
| PM-KUSUM leadership | Reliance on govt scheme funding |
| Vertical integration | Revenue linked to agriculture (~96%) |
| Revenue doubled; margins expanded | High geographic & client concentration |
| Healthy order book & distribution network | Working capital intensity & debt reliance |
| Low gearing; strong interest coverage | Vulnerability to raw material price swings |
| Robust RoCE (~70%) | Execution/delivery risks for expansion |
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