The Indian primary market is buzzing once again with the announcement of Oswal Pumps Limited's highly anticipated Initial Public Offering (IPO). For investors looking to participate in the growth story of a prominent player in the pumps and solar solutions sector, understanding the nuances of this offering is crucial. This detailed guide provides a thorough analysis of Oswal Pumps IPO, covering everything from its business operations to financial health and the specifics of the public issue.
About Oswal Pumps Limited: Powering India's Growth
Established in 2003, Oswal Pumps Limited has emerged as a significant manufacturer and distributor of a wide array of pumps and related equipment. Their product portfolio is diverse, serving domestic, agricultural, and industrial needs. Key offerings include:
- Solar pumps
- Submersible pumps
- Monoblock and pressure pumps
- Sewage pumps
- Electric motors and associated components like submersible winding wires & cables, and electric panels.
A notable aspect of their business is their strong presence in the solar pumping sector. As of August 31, 2024, the company successfully executed 26,270 turnkey solar pumping systems directly under the PM-KUSUM Scheme across various states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra. With a manufacturing facility in Karnal, Haryana, spanning over 41,076 square meters, Oswal Pumps boasts a robust operational base. Their distribution network has also seen substantial growth, expanding from 473 distributors in March 2022 to 636 by March 2024, alongside exports to 17 countries globally.
Oswal Pumps IPO: Key Offering Details
The public offering by Oswal Pumps Limited is a book-built issue, combining fresh issuance of new shares and an offer for sale (OFS) by existing shareholders. Below are the essential details of the IPO:
| Detail | Specification |
|---|---|
| **Offering Period** | June 13, 2025 to June 17, 2025 |
| **Face Value** | ₹1 per share |
| **Price Range** | ₹584 to ₹614 per share |
| **Lot Size** | 24 Shares |
| **Total Issue Volume** | 2,25,95,114 shares (aggregating up to ₹1,387.34 Cr) |
| **Fresh Issue Component** | 1,44,95,114 shares (aggregating up to ₹890.00 Cr) |
| **Offer for Sale (OFS) Component** | 81,00,000 shares (aggregating up to ₹497.34 Cr) |
| **Issue Structure** | Bookbuilding IPO |
| **Listing Exchanges** | BSE, NSE |
Investor Categories and Allotment Allocation
The shares are reserved for different investor categories as follows:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIBs) | Not more than 50.00% of the Offer |
| Retail Individual Investors | Not less than 35% of the Offer |
| Non-Institutional Investors (NII/HNI) | Not less than 15% of the Offer |
Understanding Lot Sizes and Investment Amounts
Investors can bid for a minimum of 24 shares and in multiples thereof. Here's a breakdown of the minimum and maximum investment for various investor types:
| Application Type | Lots (Min/Max) | Shares (Min/Max) | Amount (Min/Max) |
|---|---|---|---|
| Retail (Min) | 1 | 24 | ₹14,736 |
| Retail (Max) | 13 | 312 | ₹1,91,568 |
| Small NII (Min) | 14 | 336 | ₹2,06,304 |
| Small NII (Max) | 67 | 1,608 | ₹9,87,312 |
| Big NII (Min) | 68 | 1,632 | ₹10,02,048 |
For retail investors, it is generally recommended to bid at the cut-off price to maximize chances of allotment, especially in oversubscribed scenarios.
IPO Timeline: Marking Your Calendar
Keep track of the important dates for the Oswal Pumps IPO to ensure you don't miss out on any crucial steps.
Please note that these dates are tentative and subject to change. Investors should regularly check official announcements for any updates.
Financial Performance Snapshot
A look at Oswal Pumps Limited's financial health provides insights into its growth trajectory and operational efficiency. Here's a summary of their restated consolidated financials:
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| **Assets (₹ Crore)** | 1,096.01 | 511.28 | 252.30 | 221.84 |
| **Revenue (₹ Crore)** | 1,067.34 | 761.23 | 387.47 | 361.11 |
| **Profit After Tax (₹ Crore)** | 216.71 | 97.67 | 34.20 | 16.93 |
| **Net Worth (₹ Crore)** | 378.80 | 160.17 | 59.97 | 24.57 |
| **Total Borrowing (₹ Crore)** | 346.30 | 75.42 | 59.28 | 87.54 |
Key Performance Metrics (as of March 31, 2024)
These indicators provide deeper insights into the company's efficiency and profitability:
| Metric | Value |
|---|---|
| Return on Capital Employed (ROCE) | 81.85% |
| Debt/Equity Ratio | 0.42 |
| Return on Net Worth (RoNW) | 88.73% |
| Profit After Tax Margin | 12.83% |
| Price to Book Value | 38.14 |
Earnings Per Share (EPS) and Price-to-Earnings (P/E) Ratio
The valuation metrics are crucial for assessing the offering's attractiveness:
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| **Earnings Per Share (₹)** | 9.82 | 25.35 |
| **Price-to-Earnings (x)** | 62.54 | 24.22 |
*Note: Pre-IPO EPS is based on pre-issue shareholding and FY24 earnings (as of March 31, 2024). Post-IPO EPS is based on post-issue shareholding and annualized FY25 earnings (as of December 31, 2024).*
Promoters and Their Vision
The driving forces behind Oswal Pumps Limited are its promoters: Vivek Gupta, Amulya Gupta, Shivam Gupta, Ess Aar Corporate Services Private Limited, Shorya Trading Company Private Limited, and Singh Engcon Private Limited. Their collective vision has steered the company's growth.
Promoter Shareholding
The current shareholding of the promoters stands at:
- **Pre-IPO Shareholding:** 99.88%
- **Post-IPO Shareholding:** (To be calculated post-dilution from the fresh issue)
Purpose of the Offering Proceeds
Oswal Pumps Limited intends to utilize the net proceeds from this public offering for several key objectives aimed at strengthening its financial position and fueling future growth:
| S.No. | Objective | Expected Amount (₹ in crores) |
|---|---|---|
| 1 | Funding certain capital expenditures | 89.86 |
| 2 | Investment in wholly-owned subsidiary (Oswal Solar) for new manufacturing units in Karnal, Haryana | 272.76 |
| 3 | Partial or full pre-payment/re-payment of company's outstanding borrowings | 280.00 |
| 4 | Investment in wholly-owned subsidiary (Oswal Solar) for repayment/prepayment of its outstanding borrowings | 31.00 |
| 5 | General corporate purposes | (Remaining amount) |
Applying for the Oswal Pumps IPO
Applying for an IPO online has become a streamlined process. Most brokerage platforms offer a convenient way to apply. You can typically apply using either UPI (Unified Payments Interface) or ASBA (Applications Supported by Blocked Amount) as your payment method.
General Steps for Online IPO Application:
- Login to your broker's trading platform (e.g., their website or mobile app).
- Navigate to the "IPO" or "Public Issues" section.
- Find the "Oswal Pumps IPO" and click to bid.
- Enter your UPI ID (for UPI applications) or select your bank account (for ASBA applications).
- Specify the quantity of shares you wish to apply for (in multiples of the lot size) and your bid price. Opting for the "cut-off price" is a common strategy for retail investors.
- Submit your application.
- If using UPI, approve the mandate request in your UPI application within the stipulated time.
IPO Support Team Details
Company Contact Information
- **Company Name:** Oswal Pumps Limited
- **Address:** Oswal Estate NH-1, Kutail Road, P. O. Kutail, District Karnal, Karnal, Haryana
- **Phone:** +91 18 4350 0307
- **Email:** investorrelations@oswalpumps.com
- **Website:** www.oswalpumps.com
IPO Registrar Details
The registrar for the Oswal Pumps IPO is responsible for managing the application and allotment process.
- **Registrar Name:** MUFG Intime India Private Limited (Link Intime)
- **Phone:** +91-22-4918 6270
- **Email:** oswalpumps.ipo@linkintime.co.in
- **Website:** linkintime.co.in
Book Running Lead Managers
These financial institutions are responsible for managing the IPO process:
- IIFL Capital Services Limited
- Axis Capital Limited
- CLSA India Private Limited
- JM Financial Limited
- Nuvama Wealth Management Limited