Oswal Pumps IPO open tomorrow: Should you bid? Here's what analysts suggest

Oswal Pumps aims to raise ₹1,387.34 crore through the IPO comprising a fresh issue of 14.5 million shares and an OFS of 8.1 million shares

Oswal Pumps IPO: The initial public offering (IPO) of pump manufacturer Oswal Pumps will open for public subscription on Friday, June 13, 2025. The company aims to raise ₹1,387.34 crore through the public offer comprising a fresh issue of 14.5 million equity shares and an offer for sale (OFS) of 8.1 million shares. 

Oswal Pumps IPO details

The three-day subscription window will close on Tuesday, June 17, 2025. According to the red herring prospectus (RHP), the basis of the allotment of shares is expected to be finalised on Wednesday, June 18, 2025. Shares of Oswal Pumps will be listed on both exchanges BSE and NSE tentatively on Friday, June 20, 2025. 

 

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The company has set the price band in the range of ₹584 to ₹614 per equity share. Retail investors would require a minimum investment amount of ₹14,016 to subscribe for at least one lot comprising 24 shares. 

 

MUFG Intime India, formerly Link Intime, serves as the registrar for the issue. IIFL Capital Services, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management are the book-running lead managers.  

Oswal Pumps IPO GMP

According to sources tracking unofficial market activities, the unlisted shares of Oswal Pumps were trading at around ₹697 per share, commanding a grey market premium (GMP) of ₹83 or 13.5 per cent over the upper band price of ₹615.

Oswal Pumps IPO - Should you subscribe?

SBI Securities - Subscribe for long-term 

Analysts at SBI Securities have recommended investors subscribe to the Oswal Pumps IPO for the long-term investment horizon. "At the upper price band of ₹614, the IPO is valued at 9MFY25 annualised P/E and EV/Ebitda multiple of 24.2x and 15.1x respectively at post-issue capital," the brokerage said in a research note. 

 

According to the analysts, the company has an order book of ₹1,100 crore which is 0.8x of its 9MFY25 annualised revenue with an additional bid pipeline of ₹3,200 crore indicating decent growth visibility. "However, an overhang for the business would be its dependence on government projects/policy and delay in cash flow," it added.  

Bajaj Broking - Subscribe for long-term 

According to analysts at Bajaj Broking, based on its recent financial data the issue appears aggressively priced. The segment is getting crowded with many corporates entering in this field. Well-informed investors may park funds for the medium to long term.

 

"For the last three fiscals, the company has posted an average earnings per share (EPS) of ₹6.34 and an average return on net worth (RoNW) of 81.15 per cent. The issue is priced at a P/BV of 16.13 based on its net asset value (NAV) of ₹38.06 as of December 31, 2024, and at a P/BV of 5.52 based on its post-IPO NAV of ₹111.32 per share (at the upper cap)," the brokerage said.

 

"If we attribute FY25 annualised super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 24.33. Based on FY24 earnings, the P/E stands at 71.65. Thus, the issue is aggressively priced," it added. 

Arihant Capital - Subscribe for long-term 

In its research note, Arihant Capital said that Oswal Pump demonstrates solid fundamentals with a strong foothold in the solar agricultural pump segment, underpinned by consistent revenue growth and vertical integration. Its diversified product mix and expanding distribution network reduce market concentration risks and support scale. 

  "While the shift towards direct participation in government schemes may impact distributor-led revenues, it aligns with a strategy to capture higher-margin opportunities. Continued policy support for renewable energy and pump replacement demand provides a favourable long-term industry outlook, positioning the company for steady growth," the brokerage said. 

 

"At the upper price band of ₹614, the issue has a P/E ratio of 24.22x, based on annualised 9MFY25 EPS of ₹25.4," it added. The brokerage has assigned a "Subscribe for long term" rating to the issue.

About Oswal Pumps

Incorporated in 2003, Oswal Pumps is a manufacturer and distributor of pumps. The company offers a diverse range of products catering to domestic, agricultural, and industrial applications, including solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires & cables, and electric panels. As of August 31, 2024, the company had executed orders for 26,270 turnkey solar pumping systems directly under the PM-Kusum Scheme for several states, including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.