Oswal Pumps IPO : Check out 10 key things to know from RHP before investing

Mint

a day ago

Oswal Pumps IPO: The public subscription for Oswal Pumps' initial share-sale will commence on June 13 and end on June 17. Oswal Pumps IPO price band has been set between ₹ 584 and ₹ 614 per share for its initial public offering (IPO) totaling ₹ 1,387 crore.
This IPO includes a fresh issue of shares worth ₹ 890 crore along with an offer-for-sale (OFS) of 81 lakh shares valued at ₹ 497.34 crore, based on the upper price limit, by promoter Vivek Gupta. This brings the total issue amount to ₹ 1,387.34 crore.
Funds raised from the fresh issue will be allocated for several capital expenditures; investing in the wholly-owned subsidiary Oswal Solar through debt or equity, establishing new manufacturing facilities in Karnal, Haryana, repaying debts, and for various corporate purposes.
Oswal Pumps began its journey in 2003 with the production of low-speed monoblock pumps and has since broadened its operations to include manufacturing grid-connected submersible pumps and electric motors.
Half of the total issue size has been allocated for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional buyers.
The leading book-running managers for the issue are IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management.
Oswal Pumps IPO GMP today is +83. This indicates Oswal Pumps share price was trading at a premium of ₹ 83 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Oswal Pumps share price is indicated at ₹ 697 apiece, which is 13.52% higher than the IPO price of ₹ 614.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
Vivek Gupta, Amulya Gupta, Shivam Gupta, Shorya Trading Company Private Limited, Ess Aar Corporate Services Private Limited, and Singh Engcon Private Limited serve as the Promoters of their company. Together, the promoters possess a total of 97,155,300 equity shares, which constitutes 97.66% of the pre-Offer issued, subscribed, and paid-up share capital of their company, based on a fully diluted basis.
As stated in the red herring prospectus (RHP), the company's publicly traded peers comprise Kirloskar Brothers Ltd (showing a P/E of 41.94), Shakti Pumps (India) Ltd (showing a P/E of 66.72), WPIL Ltd (showing a P/E of 27.31), KSB Ltd (showing a P/E of 66.79), and Roto Pumps Ltd (showing a P/E of 42.08).
The company produces solar-powered and grid-connected submersible and monoblock pumps, electric motors, including induction and submersible types, as well as solar modules, marketed under the 'Oswal' brand. With more than 22 years of experience in pumps, the firm specializes in engineering, product design, manufacturing, and testing.
The company meets the various needs of end-users in agriculture for irrigating crops; in residential areas for gardening, fountain maintenance, water extraction, supplying water to overhead tanks, and household cleaning; in commercial establishments like shopping malls, offices, and hotels; and in industries where their pumps are utilised in boilers, water treatment, water transportation, and sewage systems, while their electric motors support machinery applications and cooling tower systems.
As per the 1Lattice Report, the valuation of the solar pump market in India stood at ₹ 164.5 billion in Fiscal 2025, and it is projected to expand at a compound annual growth rate (CAGR) of 11.0% from Fiscal 2025 to Fiscal 2030, reaching ₹ 271.1 billion by Fiscal 2030.
The firm runs a manufacturing plant situated in Karnal, Haryana, which spans an overall land area of 41,076 square meters as of March 31, 2024.
By August 31, 2024, the company had completed orders for 26,270 comprehensive solar pumping systems as part of the PM-KUSUM Scheme across various states, such as Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
The company is expanding its distributor network throughout India, rising from 473 distributors on March 31, 2022, to 636 distributors by March 31, 2024. Additionally, from April 1, 2021, to March 31, 2024, Oswal Pumps has exported its products to 17 countries in the Asia-Pacific, Middle East, and North Africa regions.
For the nine-month period concluding in December 2024, the firm reported total revenues of ₹ 1,065.67 crore and a net profit amounting to ₹ 216.71 crore. As of April 2025, the company had total outstanding borrowings of ₹ 308.57 crore on a standalone basis.
Some of the key risks are as follows; The firm's failure to fulfill their commitments, including financial and other covenants related to their debt financing agreements, could negatively impact their business, operational results, financial status, and cash flows.
The company's subsidiaries, Oswal Solar and Oswal Green, have faced losses previously and may continue to do so in the future, potentially affecting their operations and business outcomes.
The quantity of Turnkey Solar Pumping Systems granted to them by state and central government agencies is dependent on interest from the relevant beneficiaries, and the actual number of Turnkey Solar Pumping Systems they ultimately install might be less than the quantity awarded.
Half of the equity shares allocated to anchor investors within the anchor investor portion will be subject to a lock-in period of 90 days starting from the date of allotment, while the other half of the equity shares allocated to anchor investors will have a lock-in period of 30 days from the date of allotment.
By August 31, 2024, the company had completed orders for 26,270 comprehensive solar pumping systems as part of the PM-KUSUM Scheme across various states, such as Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.
The company is expanding its distributor network throughout India, rising from 473 distributors on March 31, 2022, to 636 distributors by March 31, 2024. Additionally, from April 1, 2021, to March 31, 2024, Oswal Pumps has exported its products to 17 countries in the Asia-Pacific, Middle East, and North Africa regions.
For the nine-month period concluding in December 2024, the firm reported total revenues of ₹ 1,065.67 crore and a net profit amounting to ₹ 216.71 crore. As of April 2025, the company had total outstanding borrowings of ₹ 308.57 crore on a standalone basis.
Some of the key risks are as follows; The firm's failure to fulfill their commitments, including financial and other covenants related to their debt financing agreements, could negatively impact their business, operational results, financial status, and cash flows.
The company's subsidiaries, Oswal Solar and Oswal Green, have faced losses previously and may continue to do so in the future, potentially affecting their operations and business outcomes.
The quantity of Turnkey Solar Pumping Systems granted to them by state and central government agencies is dependent on interest from the relevant beneficiaries, and the actual number of Turnkey Solar Pumping Systems they ultimately install might be less than the quantity awarded.
Half of the equity shares allocated to anchor investors within the anchor investor portion will be subject to a lock-in period of 90 days starting from the date of allotment, while the other half of the equity shares allocated to anchor investors will have a lock-in period of 30 days from the date of allotment.
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