Oswal Pumps Ltd., based in Karnal, Haryana, closed its ₹1,387 crore IPO today with strong investor interest. The issue was subscribed 3.05 times and backed by ₹416.2 crore from anchor investors. Shares are set to list on June 20.
Oswal Pumps Ltd., a leading solar-powered pump manufacturer from Haryana, closed its ₹1,387 crore initial public offering (IPO) today with strong investor participation. The IPO was subscribed 3.05 times, showing growing interest in renewable energy investments and agri-tech infrastructure.
With over 22 years in the industry, Oswal Pumps is among India’s largest producers of solar agricultural pumps under the PM-KUSUM scheme. Its product range includes solar and grid-connected pumps, electric motors, and solar panels, all manufactured across its two facilities in Karnal, Haryana.
IPO Highlights
- Total Subscription: 3.05x
- Retail Quota: 1.24x
- NII Quota: 5.97x
- QIB Quota: 0.28x
- Grey Market Premium (GMP): ₹56, indicating an estimated listing at ₹670
- Price Band: ₹584 – ₹614 per share
- Minimum Lot Size: 24 shares
- Listing Date: June 20, 2025 (on BSE and NSE)
On the day before the IPO opened, Oswal Pumps raised ₹416.2 crore from anchor investors including ICICI Prudential MF, Kotak Mahindra MF, Aditya Birla Sun Life MF, BNP Paribas, Societe Generale, and Amundi.
Fund Utilization
The issue includes a fresh equity raise of ₹890 crore and an offer-for-sale component from promoter Vivek Gupta. Key allocations include:
- ₹89.86 crore for capital expenditure
- ₹273 crore to set up a solar manufacturing unit under Oswal Solar in Haryana
- ₹280 crore to repay debts
- ₹31 crore toward Oswal Solar’s financial obligations
Company Strengths
- Leading solar pump supplier under PM-KUSUM
- Vertically integrated production and design
- Strong presence in key agricultural states
- Diversified product and customer base
- Experienced promoter and leadership team
Risks to Consider
- High dependence on government subsidies and schemes
- Vulnerability to fluctuations in the agricultural sector
Analysts from leading brokerages have given the IPO a “Subscribe” rating, noting its attractive valuation at 17.1x FY25 EV/EBITDA and long-term growth prospects, especially with India’s focus on clean energy and agricultural support.
