Mumbai, June 17, 2025 – The Oswal Pumps IPO has taken the Indian stock market by storm, with investors buzzing about its strong performance as the subscription window closes today. The grey market premium (GMP) for Oswal Pumps shares is holding steady at ₹55, signaling a potential listing gain of around 9% when the shares hit the BSE and NSE on June 20, 2025. But what’s driving this excitement, and should you jump in?
A Hot IPO with Strong Demand
Oswal Pumps, a leading name in solar and grid-connected pump manufacturing, launched its ₹1,387.34 crore IPO on June 13, 2025. The issue, a mix of a fresh issue of ₹890 crore and an offer-for-sale of 81 lakh shares worth ₹497.34 crore, has seen robust demand, especially from retail and non-institutional investors (NIIs). By the end of Day 2, the IPO was subscribed 1.61 times, with NIIs leading at 4.50 times and retail investors at 1.12 times, according to NSE data.
The company, based in Karnal, Haryana, is riding the wave of India’s clean energy push, particularly through the government’s PM-KUSUM scheme. Oswal Pumps has supplied over 26,270 solar pumping systems across states like Haryana, Rajasthan, and Uttar Pradesh as of August 2024, making it a key player in the solar pump market.
Why the ₹55 GMP Matters
The grey market premium of ₹55 suggests that unlisted shares are trading at around ₹669, a 9% jump over the upper price band of ₹614. This GMP, though lower than its peak of ₹95 earlier this month, reflects steady investor confidence in a strong listing. Experts say this could mean a decent profit for investors on listing day, but they caution that GMP is not a guaranteed predictor of performance.
“Oswal Pumps is a solid bet for long-term investors due to its growth in the solar pump sector and government-backed demand,” says Gaurav Garg of Lemonn Markets. “But the high valuation and reliance on government contracts could be risks to watch.”
Financials Fueling the Hype
Oswal Pumps has shown impressive growth, with revenue soaring at a 45.07% CAGR from FY22 to FY24. In FY24, the company reported ₹761.23 crore in revenue and a profit of ₹97.67 crore, up from ₹385.04 crore and ₹34.20 crore in FY23. For the nine months ending December 2024, revenue hit ₹1,065.67 crore with a net profit of ₹216.71 crore. This growth, coupled with a strong order book of ₹1,100 crore, has analysts optimistic about its future.
The IPO funds will be used to set up new manufacturing units, reduce debt, and support its subsidiary, Oswal Solar, boosting its production capacity.
Should You Apply?
With a price band of ₹584–₹614 per share and a minimum lot size of 24 shares (₹14,736 investment), the IPO is accessible to retail investors. Analysts like those at SBI Securities recommend subscribing for long-term gains, citing Oswal’s leadership in solar pumps and a post-issue P/E ratio of 24.2x, which is competitive compared to peers like Shakti Pumps and Kirloskar Brothers.
However, risks remain. Over 87% of Oswal’s revenue comes from PM-KUSUM contracts, making it vulnerable to policy changes. Its high debt of ₹308.57 crore as of April 2025 is another concern, though IPO proceeds will help repay ₹280 crore.
What’s Next?
The IPO closes today, June 17, with share allotment expected on June 18 and listing on June 20. Investors are advised to apply through ASBA or UPI by 5:00 PM today to join the rush.
For those eyeing quick listing gains, the ₹55 GMP is promising, but long-term investors may find Oswal Pumps appealing due to its growth story and India’s push for renewable energy. As always, consult a financial advisor before investing, as market conditions and GMP can shift.
Will Oswal Pumps deliver a blockbuster listing? The market is watching closely!
Disclaimer: This article is for informational purposes only and not investment advice. Always consult a certified financial advisor before making investment decisions.
Last Updated on: Tuesday, June 17, 2025 5:07 pm by M.Deepak Reddy | Published by: M.Deepak Reddy on Tuesday, June 17, 2025 5:07 pm | News Categories: Startup, Trending
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