A new wave of enthusiasm is sweeping the Indian stock market as Oswal Pumps Limited, a leading company in solar energy and pump manufacturing, is set to launch its Initial Public Offering (IPO). The IPO will open on June 13, 2025, and close on June 17, 2025, presenting investors with a golden opportunity to invest in solar energy and environmentally friendly technology. Let's delve into the key features of this IPO and understand the company's strengths in a simple and unique way.
IPO Highlights
- Size and Structure: This IPO comprises ₹890 crore of fresh equity shares and an Offer For Sale (OFS) of 8.1 million shares by promoter Vivek Gupta (holding 25.17% stake in the company).
- Price Band: ₹584 to ₹614 per share.
- Lot Size: Each lot contains 24 shares, meaning retail investors will need to invest at least ₹14,736.
- Timeline: Anchor Book: June 12, 2025
- Allocation: June 18, 2025
- Refund/Share Credit: June 19, 2025
- Listing: June 20, 2025, on the NSE SME platform.
- Registrar: MUFG Intime India Private Limited.
What Does the Company Do?
Oswal Pumps manufactures solar-powered and grid-connected pumps (submersible, monoblock), electric motors, and solar modules. With its ‘Oswal’ brand, the company has excelled in engineering, design, and product testing for 22 years. It has supplied 38,132 solar pumping systems under the Indian government's PM KUSUM scheme across Haryana, Rajasthan, Uttar Pradesh, and Maharashtra, providing farmers with affordable and clean electricity.
Use of Funds from IPO
The company has a well-defined plan for utilizing the funds raised:
- ₹89.86 crore: Capital Expenditure (CAPEX).
- ₹273 crore: For a new manufacturing unit in Haryana (investment in Oswal Solar).
- ₹280 crore: Debt repayment.
- ₹31 crore: Debt repayment for subsidiary company Oswal Solar.
- Remaining Amount: General corporate purposes.
This plan will help the company increase production, reduce debt, and strengthen its foothold in the solar energy sector.
Company's Financial Strength
Oswal Pumps has demonstrated b financial performance:
- Fiscal Year 2023: Revenue ₹387 crore, Net Profit ₹34.2 crore.
- Fiscal Year 2024: Revenue ₹761.2 crore, Net Profit ₹97.7 crore.
- 2025 (First 9 months): Revenue ₹1,067.3 crore, Net Profit ₹216.7 crore.
- These figures reflect the company's rapidly growing demand and b business position.
Why Invest?
- Growing Solar Energy Market: Government initiatives like PM KUSUM are driving demand for solar energy, benefiting the company.
- Strong Financial Position: Consistently increasing revenue and profits build investor confidence.
- Sustainable Future: Investing in solar energy and environmentally friendly technology can be beneficial in the long run.
What are the Risks?
- Market Competition: Several companies operate in the solar energy sector, posing challenges.
- Raw Material Prices: Fluctuations in raw material prices can impact profitability.
- Market Conditions: The success of the IPO will also depend on the prevailing stock market environment.
Why is this a Unique Opportunity?
The Oswal Pumps IPO is particularly attractive to investors who believe in clean energy and a sustainable future. The company's association with government schemes, b financial performance, and the growing demand in the solar energy sector make it a compelling investment option. If you are looking to gain a foothold in the burgeoning solar energy market, this IPO could be an excellent opportunity.
