Date: June 20, 2025
Oswal Pumps, a prominent name in the manufacturing of pumps and electric motors, made its debut on the Indian stock exchanges on June 20, 2025. The company’s Initial Public Offering (IPO), priced between ₹584 and ₹614 per share, saw a modest yet positive listing performance, opening at a premium of 3.26% on the National Stock Exchange (NSE) and 2.93% on the Bombay Stock Exchange (BSE).
Oswal Pumps IPO: Price Range and Subscription Highlights
The Oswal Pumps IPO consisted of a mix of fresh equity shares worth ₹890 crore and an offer-for-sale (OFS) of 81 lakh shares worth ₹497.34 crore, making the total issue size approximately ₹1,387.34 crore.
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IPO Price Range: ₹584 – ₹614 per share
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Offer Size: ₹1,387.34 crore
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Fresh Issue: ₹890 crore
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Offer-for-Sale (OFS): ₹497.34 crore
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The IPO received an overwhelming response, with the total subscription at 34.42 times the offered shares. Subscription details were as follows:
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Qualified Institutional Buyers (QIBs): 88.08 times
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Non-Institutional Investors (NIIs): 36.70 times
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Retail Investors: 3.60 times
Such high demand indicates strong investor confidence in Oswal Pumps’ growth prospects and financial stability.
Oswal Pumps IPO: Debut and Investor Gains
Shares of Oswal Pumps listed on the NSE at ₹634, marking a premium of 3.26% over the issue price of ₹614. On the BSE, the shares began trading at ₹632, yielding a 2.93% premium.
For investors who received allotment in the Oswal Pumps IPO, the lot size was 24 shares, which meant a total cost of ₹14,736 per lot. At the listing price of ₹634 per share, investors made a gain of ₹15,216 per lot (₹634 x 24 shares).
This gentle yet positive debut reflects the strong fundamentals and positive market sentiment surrounding the company.
Use of IPO Proceeds: Key Areas of Investment
The proceeds from the IPO will be strategically deployed to strengthen Oswal Pumps’ position in the market and support its growth initiatives. The key uses for the raised capital include:
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Capital Expenditure: Funding the company’s expansion and operational needs.
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Investment in Oswal Solar: The company plans to inject funds into its wholly-owned subsidiary, Oswal Solar, either through debt or equity.
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Manufacturing Facilities Expansion: Setting up new manufacturing plants in Karnal, Haryana.
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Debt Repayment: Reducing the company’s existing debt burden.
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General Corporate Purposes: For general business operations and contingency management.
These strategic moves reflect Oswal Pumps’ commitment to growth and expansion in the rapidly evolving pump manufacturing sector.
Company Overview: Oswal Pumps’ Journey and Growth
Founded in 2003, Oswal Pumps initially focused on manufacturing low-speed monoblock pumps. Over the years, the company expanded its product portfolio to include submersible pumps and electric motors, gaining significant traction in both domestic and international markets.
In the most recent nine months ending December 2024, the company reported a revenue from operations of ₹1,067.34 crore, with a profit after tax (PAT) of ₹216.71 crore. For the financial year 2023-24, the company posted ₹761.23 crore in revenue and ₹97.67 crore in net profit. These strong financial results underpin the company’s ongoing expansion plans and future growth trajectory.
Key IPO Lead Managers
The book-running lead managers (BRLMs) for the Oswal Pumps IPO were:
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IIFL Capital Services
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CLSA India
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JM Financial
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Axis Capital
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Nuvama Wealth Management
These firms were responsible for managing the IPO process, ensuring its smooth execution, and helping Oswal Pumps achieve its fundraising goals.
Conclusion: A Promising Future for Oswal Pumps
Oswal Pumps’ IPO debut marks an important milestone in the company’s journey. While the listing was not overwhelming, the steady premium on both the NSE and BSE reflects the company’s strong fundamentals and the market’s confidence in its future growth. The capital raised through this IPO will allow Oswal Pumps to pursue its expansion plans and strengthen its market position, potentially offering significant upside for investors in the long term.
Investors who were allotted shares in the Oswal Pumps IPO can take solace in the company’s promising growth prospects and the strategic deployment of funds raised, which should drive long-term value creation.
