Oswal Pumps Limited, a leading manufacturer of solar and grid-connected pumps, debuted on the stock market today, listing at a modest 3.26% premium on the NSE at ₹634 and 2.93% on the BSE at ₹632, against the IPO issue price of ₹614. By 11:00 AM IST, the stock was trading at ₹636.35 on the NSE, reflecting a 3.64% gain, amid steady investor interest despite a volatile market.
The ₹1,387.34-crore IPO, open from June 13 to June 17, 2025, saw robust demand, with a subscription rate of 34.42 times, receiving bids for over 55.80 crore equity shares against the 1.62 crore offered. Qualified Institutional Buyers (QIBs) led with an 88.08 times subscription, followed by Non-Institutional Investors (NIIs) at 36.70 times, and Retail Individual Investors (RIIs) at 3.60 times. The company raised ₹416.2 crore from anchor investors, including ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, and Aditya Birla Sun Life Mutual Fund.
Investor Gains Per Lot: With a lot size of 24 shares, investors who were allotted one lot at the IPO price of ₹614 earned a profit of ₹480 per lot at the NSE listing price of ₹634, translating to a 3.26% gain. Those who sold at the peak price of ₹646.90 on the BSE by 10:30 AM IST would have made ₹788.40 per lot, a 5.35% return.
Financial Snapshot of Oswal Pumps Ltd:
Oswal Pumps reported a 96.4% revenue jump from ₹387.47 crore in FY23 to ₹761.23 crore in FY24, with net profit soaring 185.6% from ₹34.20 crore to ₹97.67 crore. For the nine months ending December 31, 2024, revenue reached ₹1,067.34 crore, with a profit after tax of ₹216.71 crore, reflecting a revenue CAGR of 45.07% from FY22 to FY24. The company’s alignment with the PM-KUSUM scheme and exports to 17 countries bolster its growth outlook. However, its debt of ₹308.57 crore as of April 2025 remains a concern.
Expert Views: Prashanth Tapse of Mehta Equities had anticipated a 10–15% listing gain, citing strong fundamentals and investor confidence. While the listing fell short of grey market expectations of ₹667–₹675 (8.6–9.93% premium), Tapse recommends holding for long-term gains, given the company’s growth in solar-powered solutions. He advises non-allotted investors to buy on dips for potential upside.
Should You Buy, Sell, or Hold? Analysts suggest holding for long-term investors, given Oswal Pumps’ attractive valuation (P/E of 24 compared to peers like Kirloskar Brothers at 41.94) and its role in India’s clean energy push. Short-term traders may consider booking profits if the stock nears ₹650, while fresh investors could accumulate on price corrections.
Market Context: The Sensex stood at 82,144.67 and Nifty 50 at 25,026.55, showing positive momentum. Posts on X reflected mixed sentiment, with some investors disappointed by the 3% listing gain against expectations of 5–10%, while others see potential for post-listing growth.
Oswal Pumps plans to use IPO proceeds for capital expenditure (₹89.86 crore), debt repayment (₹280 crore), investment in its subsidiary Oswal Solar (₹272.76 crore), and general corporate purposes. With a market cap of ₹6,998.2 crore, the stock remains a compelling watch for investors.
Disclaimer: Investments in securities are subject to market risks. Consult a financial advisor before investing. For real-time updates, visit www.nseindia.com or www.bseindia.com.
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