IPOListing

Oswal Pumps IPO: 34x Subscription Sparks Confidence!

Retail and institutional investors flood Oswal Pumps IPO with bids; GMP trends are strong ahead of the June 20 listing.

Summary:
Oswal Pumps Limited has witnessed overwhelming investor demand as its ₹890 crore IPO was subscribed 34 times on the final day of bidding. Backed by strong fundamentals and sectoral tailwinds, the IPO generated massive interest from QIBs, NIIs, and retail investors. The listing is scheduled for June 20, with the allotment date set for June 18. A significant grey market premium (GMP) indicates strong investor optimism in anticipation of the debut.

Oswal Pumps Limited, a leading manufacturer of water pumps and solar pumping solutions, has successfully concluded its initial public offering (IPO) with a subscription rate of 34 times on the third and final day. The ₹890 crore issue garnered intense investor interest across all categories, signalling strong confidence in the company’s business model, financial performance, and growth prospects.
Based on information from the exchanges, the IPO attracted bids for more than 101 crore shares, while only 2.97 crore shares were available. The Qualified Institutional Buyers (QIB) portion was subscribed over 80 times, while the Non-Institutional Investor (NII) segment saw bids at nearly 62 times. Retail investors, too, displayed robust enthusiasm, with their quota getting subscribed over 16 times, showcasing deep participation from individual investors.

Strong Listing Prospects Indicated by Grey Market Premium (GMP)
Prior to the listing on June 20, 2025, Oswal Pumps shares have been seeing a Grey Market Premium (GMP) between ₹85 and ₹100 per share, indicating a possible listing gain of more than 35% to 40% based on the upper price band. This heightened GMP suggests that investors are optimistic about the company’s prospects in the aftermarket and are willing to pay a premium to secure a stake in the firm even before listing.
The IPO allotment is expected to be finalized on June 18, and investors will be able to check their allotment status via the registrar’s portal or the BSE website. Refunds for non-allottees will be initiated shortly thereafter, with shares likely to be credited to demat accounts by June 19.

IPO Details: Strong Fundamentals Back the Issue
The IPO comprised a fresh issue of shares worth ₹600 crore and an offer for sale (OFS) of shares aggregating ₹290 crore by promoter Vivek Gupta. The price range for the offering was established at ₹280 to ₹298 per share, with a minimum lot size of 50 shares.
The company intends to use the net proceeds from the IPO primarily for:
Establishing a new production plant for motors and pumps in Haryana
Expanding existing solar product lines and increasing export capabilities
Working capital requirements
General corporate purposes
Oswal Pumps is expected to benefit from the government’s focus on Make in India, rural irrigation schemes, and solar energy expansion programs, which are directly aligned with its product offerings.

Strong Financial Performance Adds to Investor Confidence
The company’s financial track record has played a pivotal role in building investor trust. For FY24, Oswal Pumps reported:
Revenue: ₹950 crore, a jump of 27% YoY
EBITDA: ₹168 crore with an EBITDA margin of 17.6%
Net Profit: ₹96 crore, representing a 42% YoY growth
Return on Net Worth (RoNW): 23.4%
Such robust figures, coupled with a healthy order book and domestic as well as export demand, make Oswal Pumps a strong player in the water and solar solutions sector.

Sector Outlook Favors Long-Term Growth
The Indian pump industry, currently valued at over ₹10,000 crore, is projected to grow at a CAGR of 7.5% over the next five years, driven by demand from agricultural, domestic, and solar sectors. Oswal Pumps, with its integrated operations and pan-India distribution network, is well-positioned to capitalize on these trends.
Moreover, the company’s focus on energy-efficient and solar-powered pumps resonates with sustainability goals and environmental regulations, further enhancing its appeal.

Expert Take: A Quality Mid-Cap Growth Story
Market analysts and brokerages have widely recommended a “Subscribe” rating for the IPO, particularly for long-term investors. The pricing of the IPO at a P/E multiple of 23.4x (based on FY24 earnings) was considered reasonable compared to its listed peers, such as Kirloskar Brothers and Shakti Pumps, which are trading at higher multiples.
According to analysts at Motilal Oswal, “The strong brand recognition, impressive order book, robust financial metrics, and tailwinds from renewable and water infrastructure sectors make Oswal Pumps an attractive mid-cap growth story.”

What’s Next for Investors?
With a strong oversubscription and solid GMP, investors who are allotted shares can likely expect healthy listing gains. However, those who miss out on allotment may have opportunities to buy in post-listing dips, especially if volatility rises in the broader market.
Those interested in long-term gains should focus on the company’s execution of expansion plans, margin stability, and ability to tap into export opportunities in the solar pump segment, particularly across Africa and Southeast Asia.

Conclusion
The success of Oswal Pumps’ IPO showcases a revived interest from investors in companies focused on fundamental manufacturing and themes related to sustainable infrastructure. As India pushes forward on rural electrification, solar energy integration, and water management, Oswal’s role in providing efficient pumping solutions positions it as a potential market leader.
All eyes are now on the listing day, June 20, where market sentiment and global cues will also play a role in the stock’s performance. Investors, both new and old, will keenly watch Oswal’s journey from a family-run enterprise to a publicly listed industrial contender.

:

The image added is for representation purposes only