Oswal Pumps IPO Subscribed Only 11% on the First Day

The Oswal Pumps IPO received a subdued response from investors, with a subscription of 0.12 times by the first half of Day 1. The company is offering shares in a price band of Rs. 584 to Rs. 614 per share, with a minimum lot size of 24 shares. The issue size is Rs. 1,387.34 crore, of which Rs. 890.00 crore is a fresh issue and Rs. 497.34 crore is an offer for sale. Stay tuned for the latest updates on the Oswal Pumps IPO subscription as the offering progresses.

Oswal Pumps IPO Subscription Status - Day 1

The Oswal Pumps IPO received a lukewarm response on Day 1, with an overall subscription of just 0.12 times. The Retail Category was subscribed 0.12x, while Non-Institutional Investors (NIIs) subscribed 0.16x. The Qualified Institutional Buyers (QIBs) showed very limited interest, with a subscription of only 0.08x.

Last Updated: 1:33 PM, Friday, 13 Jun 2025

Company Overview of Oswal Pumps IPO 

Oswal Pumps began its operations in 2003 with the manufacturing of low-speed monoblock pumps and has since expanded to produce grid-connected and solar-powered submersible and monoblock pumps, electric motors, and solar modules under the ‘Oswal’ brand. With over 22 years of experience, the company serves diverse sectors including agriculture, residential, commercial, and industrial applications.

In 2019, Oswal entered the solar pump segment through the PM Kusum Scheme, and by 2021, began offering complete turnkey solar pumping systems, including pumps, modules, mounting structures, controllers, and installation services. By December 31, 2024, it had executed 38,132 such systems across states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra, becoming one of the largest suppliers under the scheme in just four years.

The company’s revenue grew at a CAGR of 45.07% from FY22 to FY24, supported by operational efficiency, sustainability efforts like recycling scrap metal for components, and innovation in smart pump controllers with mobile-based features. Its Karnal-based facility, spanning over 41,000 sq. m., is among India’s largest single-site pump manufacturing plants and is strategically located near major agricultural states. Oswal is also ALMM-listed, reflecting its compliance with national quality standards and reinforcing its strong industry reputation.

Strengths of Oswal Pumps IPO   

Let’s dive into the strengths and weaknesses to assess if the Oswal Pumps IPO is good or bad for investors.

Strengths:

• Leadership in solar agricultural pumps under the PM Kusum Scheme:
  With a revenue CAGR of 45.07% between FY22 and FY24, the company has emerged as one of the fastest-growing and largest suppliers of solar-powered agricultural pumps under the PM Kusum Scheme, offering turnkey solutions directly and through partners like Tata Power Solar.

• Vertically integrated operations:
  The company has established strong backward integration across pumps and solar module manufacturing, supported by its associate Walso Solar Solution, enabling cost efficiency, product development, and margin improvement.

• Strong in-house design expertise:
  The company’s engineering team focuses on cost-effective product innovation using advanced tools like AutoCAD, SolidWorks, and simulation software, leading to material savings and improved product performance.

• Diverse product portfolio:
  With over 22 years of experience, the company offers a wide range of pumps, electric motors, and solar modules under the ‘Oswal’ brand, catering to agricultural, residential, and industrial needs with varied technical specifications, helping expand market reach and reduce dependency on any single segment.

• Strong regional presence:
  The company has a well-established presence in key agricultural states like Haryana and growing reach in Maharashtra, Uttar Pradesh, Rajasthan, Chhattisgarh, and Punjab, with over 95% of operational revenue in recent fiscals coming from India, reflecting a strong and expanding domestic footprint.

• Wide distribution and market reach:
  With 925 distributors across India and a growing retail presence through 248 Oswal Shoppes, the company has built a strong distribution network and brand visibility. It serves both retail and institutional customers, participates in government schemes like PM Kusum, exports to 22 countries, and supports operations through a dedicated sales, marketing, and customer service team.

Risks:

• High dependency on the PM Kusum Scheme:
  A significant portion of the company’s revenue is derived from Turnkey Solar Pumping Systems supplied under the PM Kusum Scheme. However, the business remains vulnerable to changes in government policy or tender outcomes, which could materially impact its operations.

• Customer concentration risk:
  The business is heavily reliant on its top 10 customers, who contributed over 78% of its revenue in the nine months ended December 31, 2024. Any loss or reduction in orders from these key clients could significantly impact their operations, financial performance, and cash flows.

• Dependence on copper and solar cell supply:
  The company’s profitability is closely tied to the availability and pricing of copper and solar cells, which are critical raw materials for its products. Any supply disruptions, price volatility, or challenges in sourcing quality solar cells, especially given its limited procurement experience, could adversely affect their production quality, working capital, and overall financial performance.

• Export exposure and regulatory risks:
  The company exports to over 22 countries, contributing between 3.70% and 11.64% of its revenue from operations in recent years. Its international revenue may face risks from economic slowdowns, regulatory changes, trade barriers, or increased duties in export markets, potentially affecting its financial performance and global competitiveness.

Oswal Pumps IPO Details

• IPO Date: June 13, 2025 to June 17, 2025

• Issue Price: Rs. 584 to Rs. 614 per share

• Lot Size: 24 shares

• Total Issue Size: 2,25,95,114 shares (aggregating up to Rs. 1,387.34 Cr)

• Fresh Issue: 1,44,95,114 shares (aggregating up to Rs. 890.00 Cr)

•  Tentative Allotment Date: June 18, 2025

• Tentative Listing Date: June 20, 2025

How to Apply for Oswal Pumps IPO

• Visit the Rupeezy app or Rupezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.