IPO Wave Incoming! Should You Ride Oswal Pumps’ High-Pressure Listing?

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Oswal Pumps Limited, a major player in the pump and solar water solutions sector, is launching its highly anticipated ₹1,387 crore IPO on June 13, 2025. The offer, which closes on June 17, consists of a fresh issue of ₹890 crore and an offer for sale worth ₹497.34 crore. Shares are priced in the ₹584–₹614 band, with a minimum application of 24 shares—translating to a ₹14,736 entry for retail investors at the upper end.

Key Highlights:

Strong Market Buzz: The IPO has generated significant excitement in the grey market, with shares commanding a premium of ₹80–₹90, hinting at a potential 13–15% listing gain for early investors.
Growth Story: Oswal Pumps boasts robust financials, with revenue and profit CAGRs of 45% and 140% respectively between FY22–FY24. The company is a top supplier under the PM-KUSUM solar pump scheme and plans to use IPO proceeds for expansion, debt repayment, and investment in its subsidiary, Oswal Solar.

Analyst Verdicts:

SBI Securities, Bajaj Broking, and Arihant Capital all recommend subscribing for the long term, citing solid order books, vertical integration, and strong growth prospects.
However, they caution that the issue is aggressively priced, with a post-IPO P/E of 24.2x (annualized 9MFY25 EPS) and high sector competition.
The company’s dependence on government projects and potential cash flow delays are flagged as risks.
Listing & Allotment: Shares are expected to list on both BSE and NSE on June 20, with allotment finalized by June 18.

Bottom Line:

Analysts suggest well-informed investors may consider subscribing for medium to long-term gains, but urge caution due to valuation and sector dynamics.

Sources: Business Standard, Business Today, Economic Times