Oswal Pumps IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is engaged in the manufacturing of solar-powered and grid-connected submersible and monoblock pumps, electric motors—including both induction and submersible variants—as well as solar modules, all marketed under the ‘Oswal’ brand. With over 22 years of industry experience, the company has established expertise across engineering, product design, manufacturing, and testing of pumps.

It serves a wide range of end-users across multiple segments: in agriculture, for field irrigation; in the residential sector, for garden maintenance, fountains, water extraction, overhead tank supply, and household cleaning; in commercial spaces such as malls, offices, and hotels; and in industrial applications involving boilers, water treatment, transportation, sewage systems, and machinery cooling towers.

The company began operations in 2003 with the production of low-speed monoblock pumps and subsequently expanded its portfolio to include grid-connected high-speed monoblock pumps, submersible pumps, and electric motors. Recognizing the government's increasing emphasis on renewable energy, the company capitalized on its domain knowledge to foray into the manufacturing of solar-powered agricultural pumps. Initially, it catered to third-party turnkey providers, and later began directly supplying 258 turnkey solar pumping systems—comprising pumps, solar modules, mounting structures, controllers, and installations—under the PM-KUSUM scheme.

The company possesses comprehensive end-to-end pump manufacturing capabilities and has implemented significant backward integration measures over the years. This enables in-house production of key pump components, providing operational efficiency and cost advantages. Additionally, it is listed on the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM) for solar modules, affirming its compliance with BIS standards and its credibility within the renewable energy sector.

IPO Details:

Objectives of Issue:

• Funding certain capital expenditure of the Company.
• Investment in the wholly-owned Subsidiary, Oswal Solar, in the form of debt or equity, for funding the setting up of new manufacturing units at Karnal, Haryana.
• Pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the Company.
• Investment in the wholly-owned Subsidiary, Oswal Solar, in the form of debt or equity, for repayment/prepayment, in part or full, of certain outstanding borrowings availed by Oswal Solar.
• General corporate purposes.

Key Strengths:

• Vertically Integrated Manufacturing Competencies- The company operates through a vertically integrated model, covering the in-house manufacturing of key components for its pumps and the production of solar modules used in solar-powered pumping systems. Its operational capabilities are further enhanced by its associate company, Walso Solar Solution Private Limited, which specializes in manufacturing mounting structures, balance of systems (BOS), and other critical components for turnkey solar pumping projects.This integrated approach offers multiple strategic advantages, including the ability to design and develop new products, optimize operational efficiency, reduce costs, and enhance profit margins. The company possesses comprehensive end-to-end pump manufacturing capabilities, which include the production of components for both monoblock and submersible pumps. Its manufacturing processes span a wide range of specialized operations such as cast iron casting, investment casting, aluminum die casting, electrical-grade stamping, submersible cable and wire winding, injection and rubber moulding, thrust bearing assembly, stainless steel stator casing, machining, assembly, and final packaging.
• Extensive Distribution Network – As of December 31, 2024, the company has established an extensive distribution network comprising 925 distributors across India, enabling it to effectively reach and serve a broad customer base. This strong distribution framework sets the company apart in an industry where underdeveloped channels often act as a barrier to entry.To further strengthen its market presence, the company launched the ‘Oswal Shoppe’ concept in March 2024. Through this initiative, the sales and marketing team works closely with distributors to identify existing retailers who can exclusively sell Oswal products. Under this model, the company provides financial assistance for the interior design and branding of the retail outlets, while ownership of the premises remains with the retailers.
  As of the date of this Red Herring Prospectus, 248 Oswal Shoppes have been established, with 73 located in Haryana, 46 in Punjab, 57 in Uttar Pradesh, and 28 in Rajasthan. This initiative not only deepens distributor and retailer relationships but also enhances brand visibility and contributes to sustained revenue growth.
• Comprehensive Product Portfolio- It offers a wide range of solar-powered and grid-connected submersible and monoblock pumps, electric motors as well as solar modules under its ‘Oswal’ brand. Its comprehensive product portfolio allows it to address the diverse requirements of its end users in the agricultural, residential and industrial sectors. Its  product portfolio helps it to  attract new customers, expand its  market reach, solidify its industry position, and mitigate business risks by reducing dependence on any single product or end-use market. It offers pumps and electric motors with diverse product specifications for domestic and international markets.These specifications include variations in pumps and electric motors’ capacity, power, efficiency, voltage compatibility and other technical parameters

Risks:

• Extensive Dependeny on the agricultural sector- The company primarily sells pumps to meet the varied needs of end-users in the agricultural sector, particularly for field irrigation. Key demand drivers for agricultural pumps include the need for reliable irrigation water supply, rising food consumption, improvements in irrigation efficiency, advancements in technology, increased focus on farmer productivity, growing environmental consciousness favoring eco-friendly solutions, and supportive government policies and incentives.A substantial portion of the company’s business is linked to the performance of the agricultural sector. Revenue contributions from this segment stood at ₹9,510.52 million, ₹7,024.71 million, ₹3,254.70 million, and ₹2,964.21 million for the nine months ended December 31, 2024, and Fiscals 2024, 2023, and 2022, respectively—accounting for 96.55%, 96.06%, 90.84%, and 87.03% of its revenue from operations. As a result, the company remains significantly exposed to fluctuations and cyclical trends within the agricultural sector.
• Dependency on the Top 10 customers - It derives more than 70% of the revenue  from its  top 10 customers. The loss of all or a substantial portion of sales to any of its top 10 customers for any reason (including, due to loss or termination of contracts, failure to negotiate commercially acceptable terms, disputes with these customers), could have an adverse impact on its  business, results of operations, financial condition and cash flows.
• Concentrated Manufacturing Facility - As of the date of this Red Herring Prospectus, the Company and its  Subsidiary, Oswal Solar operate two manufacturing facilities which are located at Karnal in the state of Haryana. One of its  manufacturing facilities is engaged in the manufacturing of monoblock pumps, submersible pumps and electric motors, whereas the other manufacturing facility is engaged in the manufacturing of solar modules. Due to the geographic concentration of its manufacturing facilities in Karnal, Haryana, its  operations are susceptible to local and regional factors, such as civil unrest as well as other adverse social, economic and political events in Haryana, weather conditions, natural disasters, regional conflicts and other unforeseen events and circumstances. Consequently, any significant social, political or economic disruption, natural calamities or civil disruptions in Haryana, or changes in policies of the state or local governments or the government of India or adverse developments related to competition in Haryana, may adversely affect its  business, results of operations, financial conditions and cash flows.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The Indian pump market is poised for robust growth, with a strong projected CAGR over the next five years, providing a solid foundation for the company’s long-term prospects. On a peer comparison basis, the company has consistently outperformed its competitors in terms of revenue growth. While its EBITDA and PAT margins currently trail slightly behind peers, the consistent margin expansion signals a positive trend supported by rising revenues. Notably, the company's return on capital employed stands out as significantly superior within the peer group. Although the net debt-to-equity ratio is marginally higher compared to peers, it remains below 1 and is well-supported by a healthy interest coverage ratio. Valuation-wise, the company’s pre-IPO P/E multiple of 62 appears slightly stretched against the peer average of 48.96. However, its integrated operations offer strategic advantages that are expected to enhance long-term value creation. Considering these strengths, the company presents a compelling long-term investment opportunity.