Oswal Pumps Limited – IPO Review 2025, Analysis and Notes

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Key Highlights

Company Background: Oswal Pumps Limited is one of India’s fastest-growing, vertically integrated manufacturers of solar-powered and grid-connected submersible and monoblock pumps, electric motors, and solar modules. With over two decades of experience in product design, engineering, and manufacturing, the company sells its wide product portfolio under the ‘Oswal’ brand. Oswal caters to a diverse customer base across agriculture, residential, commercial, and industrial segments. Their solutions are used in applications ranging from irrigation and domestic water supply to industrial machinery and cooling towers. The company began operations in 2003 with low-speed monoblock pumps and gradually expanded into electric motors and solar-based solutions.

Market Opportunity: The Indian pump industry is witnessing robust demand driven by rapid infrastructure development, agricultural electrification, and government schemes such as the PM-KUSUM Scheme. This ₹344 billion initiative aims to install 1.4 million standalone solar agricultural pumps in off-grid areas. Oswal’s product portfolio aligns directly with this objective, placing the company in a strong position to benefit from the rising demand for renewable energy-based pumping solutions. The combination of rural electrification, increasing water management needs, and solar policy incentives makes the outlook promising for Oswal Pumps.

Product Integration and Sector Diversification: Oswal is one of the few players in India with fully integrated capabilities across pump manufacturing, electric motors, and solar modules. This integration ensures high quality, better cost control, and faster go-to-market timelines. Their pumps serve irrigation needs in agriculture, water extraction and supply in residential areas, HVAC and machinery support in industries, and high-volume operations in malls and hotels. The diversification across end-user segments provides Oswal with revenue stability and cross-sectoral opportunities.

Financials: Oswal Pumps has demonstrated robust financial growth, reporting:

• Revenue from operations for FY24: ₹10,673.44 million (up from ₹3,874.72 million in FY23)

• Profit After Tax for FY24: ₹2,167.09 million (vs ₹341.99 million in FY23)

• EPS (Basic) grew from ₹3.44 in FY23 to ₹21.78 in FY24

• ROE consistently above 80%, indicating exceptional return on equity

The company’s revenue grew at a CAGR of 45.07% over the past three fiscal years, underscoring strong execution and expanding market share.

Object of the Offer: The IPO proceeds will be used for:

1. Capital expenditure for expansion

2. Investment in subsidiary Oswal Solar for setting up manufacturing units in Karnal, Haryana

3. Debt repayment (both Oswal and Oswal Solar)

4. General corporate purposes

Valuation: At the upper price band of ₹614, the implied valuation is supported by strong revenue growth, high margins, and strong industry tailwinds. Long-term investors seeking exposure to India’s solar and agricultural infrastructure story may find value in this offering.

Key Risks:

• Oswal has substantial dependency on rural and agricultural demand, which may be cyclical and monsoon-dependent

• Execution risks in scaling new manufacturing facilities

• Policy changes related to solar subsidies or import duties could impact business projections

• Intense competition from unorganized and branded players in the pump segment

Issue Highlights

Offer Structure

Lead Book Running Managers

• Nuvama Wealth Management Ltd

• IIFL Capital Services Ltd

• Axis Capital Ltd

• CLSA India Pvt Ltd

• JM Financial Ltd

Registrar to the Offer

MUFG Intime India Private Limited

Research Analyst

Rajan Gupta
📧 rajan.gupta1@religare.com

Research Team

• Ajit Mishra – ajit.mishra@religare.com

• Abhijeet Banerjee – abhijeet.banerjee@religare.com

• Gaurav Sharma – gauravsharma2@religare.com

• Ashwani Harit – ashwani.harit@religare.com

• Divya Parmar – divya.parmar@religare.com

• Vinay Kalani – vinay.kalani1@religare.com

• Rajan Gupta – rajan.gupta1@religare.com

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• Author: Religare Broking
• Last Updated: June 12, 2025