Oswal Pumps IPO to open for subscription today; GMP at 11%: Should you bid?
Oswal Pumps
, one of India's fastest-growing solar pump manufacturers, will open its Rs 1,387 crore IPO for public subscription on June 13. The issue will close on June 17. The price band for the IPO is fixed at Rs 584–614 per share, and investors can bid for a minimum of 24 shares and in multiples thereafter.
The IPO comprises a fresh issue of shares worth Rs 890 crore and an offer for sale of 81 lakh shares by promoter Vivek Gupta. The company raised Rs 416 crore from anchor investors on June 12 by allocating 67.78 lakh shares at Rs 614 apiece to marquee institutions like Societe Generale, Smallcap World Fund,
ICICI Prudential
.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Eye bags making you look 10 years older! Just apply this from Watsons
My Beauty Life | URUHIME MOMOKO
Learn More
Undo
Oswal Pumps GMP check
The grey market premium (GMP) for Oswal Pumps stood at Rs 68. With a cap price of Rs 614, the estimated listing price is around Rs 682, implying a listing gain of about 11%.
What does Oswal Pumps do?
Founded in 2000, Oswal Pumps manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors, and solar modules. It has grown rapidly under government schemes such as the PM Kusum Yojana, under which it accounted for around 38% of India's installed solar pumps as of December 2024.
Live Events
Oswal operates a large single-site pump facility in Karnal, Haryana, with vertically integrated manufacturing capabilities. It also sells through 925 distributors across India and launched its own retail outlets — 'Oswal Shopee' — which numbered 248 as of June 2025.
Financials and valuation
The company posted strong financials with revenue increasing from Rs 360 crore in FY22 to Rs 759 crore in FY24, while PAT jumped from Rs 17 crore to Rs 98 crore. For the nine months ended December 2024, it reported a revenue of Rs 1,066 crore and net profit of Rs 217 crore, with an EBITDA margin of 30.1% and PAT margin of 20.3%.
At the upper band, the post-issue P/E is 24.2x, and EV/EBITDA is 15.1x — reasonable compared to listed peers like
Shakti Pumps
,
KSB
and
Kirloskar Brothers
, especially given Oswal's superior return ratios (RoE of 72.6% and RoCE of 56%).
Oswal Pumps IPO: Should you subscribe?
SBI Securities recommend subscribing to the IPO for a long-term horizon, citing strong revenue and profit growth, robust order book (Rs 1,100 crore), and leadership in solar pump installations. However, risks include dependence on government schemes and a high receivables cycle (140–150 days).
"Subscribe for long-term due to strong fundamentals, dominant market share under PM Kusum, and efficient cost structures," it said.
(
Disclaimer
: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
20 minutes ago
- Time of India
Govt opts for negotiated purchase of 358 acres for Global City in Ayyampuzha
Kochi: After a wait of three years, Global City at Ayyampuzha is set to become a reality. The district collector granted clearance to proceed with the purchase of land and the revenue department will formally announce the decision soon. However, this will be a 'negotiated' purchase, which is different from the normal govt land acquisition procedure under the Land Acquisition Act. In a negotiable purchase, the govt directly purchases land from the landowner after negotiation with them rather than through acquisition. According to sources, this will avoid delays in acquisition procedures. Meanwhile, the landowner can demand and receive a high amount, if the govt agrees. Normally, the govt adopts negotiable purchases in emergency conditions. Earlier, the Centre refused to grant approval to the proposed project, following which the state govt decided to proceed with the project on its own. Industry minister P Rajeeve recently visited the proposed site and held discussions regarding the land purchasing procedures with revenue officials. As a follow-up action, a committee comprising the district collector, local MLA and grama panchayat president was constituted to coordinate next steps of the land purchase. "It was decided to acquire land through negotiable settlement. As the district collector already cleared our request, we are awaiting the final level order regarding this from the revenue department to start the acquisition procedures," said a senior official of Kinfra, the implementing agency. Global City was proposed as one of the major components of the Kochi-Bangalore Industrial Corridor (KBIC) project. Among the two nodes of KBIC, the industrial manufacturing cluster (IMC) in Palakkad was approved by the cabinet committee on economic affairs six months ago and the state govt transferred 325.26 acres of land for the Palakkad IMC. However, the second node, the proposed Global City, which was intended to span across 358 acres in Ayyampuzha, faced uncertainty as the Union govt placed it on the back burner, citing that the key elements of the development planned in Ayyampuzha were primarily residential and real estate ventures, rather than industrial undertakings as defined by regulation. When 'Kochi Gift City' was envisioned as part of the industrial corridor, the central and state govts agreed to share the project cost equally. After being informed that the Gift City was designated exclusively for Gujarat, the project was renamed Global City. Though the chief minister sought approval from the Centre, the central govt stated that this project cannot be included as part of the industrial corridor. Initially, there was an agreement to allocate Rs 500 crore to acquire 500 acres, but this has now been reduced to 358 acres. Kinfra already received Rs 849 crore from KIIFB for land acquisition. Out of the 358 acres, only 215 acres would be allocated for industrial projects. Consequently, the cost of land for entrepreneurs is likely to increase significantly. These matters will be examined in detail. Efforts are underway to explore how the Global City can be made profitable, the minister said. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
News18
25 minutes ago
- News18
'Get 15 Paise For Every Rupee Contributed': Karnataka Asks Finance Commission For 'Fair Tax Devolution'
Last Updated: The state has also sought support of Rs 1.15 lakh crore investment to bolster Bengaluru's infrastructure and address regional disparities in Kalyana Karnataka and Malnad Karnataka chief minister Siddaramaiah on Friday demanded a more equitable and growth-oriented fiscal federal structure before the 16th Finance Commission, led by chairman Arvind Panagariya. Siddaramaiah highlighted the stark imbalance in fiscal returns despite Karnataka's significant contribution to the national economy. In an additional memorandum submitted to the commission, Karnataka articulated its vision for reforms aimed at creating a predictable and fair devolution system. 'Karnataka's fiscal strength fuels national growth. It is time to ensure that growth is not penalised but rewarded. We urge the commission to adopt a balanced, forward-looking approach to devolution," the chief minister stated to the media after the meeting. Siddaramaiah underscored the state's share, with Karnataka contributing nearly 8.7% of India's GDP with just 5% of the population and ranking second in GST collections. Despite this, Karnataka receives a mere 15 paise for every rupee contributed to union taxes, a figure drastically impacted by the reduction in its share from 4.713% to 3.647% under the 15th Finance Commission, leading to a cumulative loss of over Rs 80,000 crore. What Karnataka wants Karnataka has sought increased vertical devolution. It has asked to increase the states' share of taxes to at least 50% and cap cesses and surcharges at 5%, along with including union non-tax revenues in the divisible pool. It is also urging a more balanced horizontal devolution. The CM proposed that states retain 60% of their contributions, with 40% directed to less-developed states to balance growth and equity. He suggested a reduction in the weight of the income-distance criterion and greater emphasis on a state's economic contribution to avoid penalising high-performing states. Siddaramaiah advocated for critical reforms to Revenue Deficit Grants and State-Specific Grants, noting that Karnataka's per capita devolution significantly dropped between the 14th and 15th Finance Commissions. Focus Bengaluru The state has sought support of Rs 1.15 lakh crore investment to bolster Bengaluru's infrastructure and address regional disparities in Kalyana Karnataka and Malnad. Siddaramaiah has earlier launched campaigns like 'Our Tax, Our Right" to seek the state's rightful share in the devolution process. First Published: June 14, 2025, 02:39 IST
Time of India
27 minutes ago
- Time of India
Engineer loses 1.8Cr in online share trade fraud
Pune: A 64-year-old engineer from Sahakarnagar lost Rs1.78 crore in an online share trading fraud recently. Between February and May this year, the victim transferred the amounts to different bank accounts provided to him and lost it to the crooks. Tired of too many ads? go ad free now The victim, who runs a business, lodged a complaint with the Pune Cyber police on Thursday. An officer from the Pune Cyber police told TOI that, according to the complainant, in February this year, he was added to a group of investors on a mobile messaging app by an unknown person. One person was providing training on investments in the share market in that group. "The complainant told us that in April this year, the trainer messaged him and informed him that he could earn a good amount of money if he invested in shares through their trading app. The message also stated that the victim could get IPOs easily if he purchased through their app," the officer said. He said that on April 23, the complainant withdrew Rs 1 lakh, which was also credited to his bank account. When he tried to withdraw Rs 65 lakh more, he was not allowed. He was told to pay Rs 15.58 lakh for the tax. After that, he was asked to pay Rs 17 lakh under the pretext of profit-sharing fees. After the payment, the crooks told him to pay the same amount again as the complainant transferred it to his trading app by mistake. Following this, the complainant transferred the same amount. They took Rs 9 lakh more from him under the pretext of profit-sharing fees again. "After that, the complainant was told to withdraw his money. When he tried to withdraw Rs 90 lakh on May 16, the crooks closed his trading app and stopped responding to his calls. He realised that he was duped and approached us," the officer said.
