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India’s primary markets are witnessing a resurgence in IPO activity. In the coming week, starting June 9th, there are four companies launching IPOs – collectively aiming to raise over Rs 300 crore.
One of the companies – Oswal Pumps – is a Haryana-based company which specialises in making pumps suited for domestic, industrial, and agricultural purposes.
Key IPO details
- Subscription window: June 13–17, 2025
- Allotment date: Likely June 18, 2025
- Listing date: Expected June 20 on both BSE & NSE
- Issue size: Fresh issue of Rs 890 cr + OFS of 0.81 crore shares; potential to reach Rs 1000 cr fresh funds as per DRHP
- Price band: Yet to be announced
Company Snapshot
Founded in 2003, Oswal Pumps manufactures a range of solar-powered and electric pumps, electric motors, and solar modules. It primarily serves agricultural, residential, commercial, and industrial sectors.
- Impressive CAGR: ~45 per cent growth from FY22 to FY24
- Financials (FY24):
- Revenue: Rs 761 crore (vs Rs 387 crore in FY23)
- Profit after tax: Rs 98 crore (vs Rs 34 crore in FY23)
- EBITDA: Rs 153 crore
The company has been a key supplier under the PM-KUSUM scheme, delivering over 26,000 solar pumping systems. Its distributor base expanded from 473 in March 2022 to 636 in March 2024.
Why This IPO Matters
- Sector tailwinds: With rising agri-infra and irrigation needs, solar pump demand is surging.
- Strong financial trajectory: Doubling revenue and close to tripling profits in a year reflect operational efficiency.
- Aggressive capex play: Funds will bolster capex, both directly and via Oswal Solar subsidiary; debt repayment will also follow.
Risks to Consider
- Premium pricing risk: Final price band unknown — investor sentiment will hinge on the valuation.
- Market volatility: Listing timing is aggressive; broader equity fluctuations may affect performance.
- Dependency on government programs: Performance may tie back to PM-KUSUM and agri-pump subsidies.
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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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