Oswal Pumps IPO 2025: Key Details, Strengths, Risks & Proceeds Breakdown

It’s no secret that fossil fuels are choking our planet. Coal, oil, and gas have powered economies for decades, but at a steep cost. Over 75% of global greenhouse gas emissions and nearly 90% of carbon dioxide emissions come from these sources. So, the world is pivoting. Slowly, urgently, decisively. And right at the heart of this energy revolution is the sun.

Solar energy is no longer just an emerging alternative; it’s a mainstream solution shaping how countries meet their power needs today. At the end of CY24, global renewable power capacity stood at 4,448 GW. And leading the charge was solar, with 1,865 GW. Just six years ago, in 2018, it was 492 GW. That’s nearly 25% CAGR growth. 

The top five countries by installed solar capacity today are China, the US, Japan, Germany, and, yes, India. India, in fact, is on a mission to achieve net zero by 2070, aiming to generate 50% of its electricity from non-fossil sources by 2030.

And this isn’t just policy talk. The Indian government is investing substantial funds in this initiative: ₹14,007 crore has been allocated under the Production Linked Incentive (PLI) Scheme to boost solar PV manufacturing.

But there’s another sector that can play a crucial role in reducing our carbon footprint. Yes, we’re talking about agriculture. Adopting solar energy-based irrigation can help India achieve its net-zero target. That’s where solar pumps come in. 

The global solar pump market was worth ₹30,000 crore in 2024 and is set to more than double to ₹70,000 crore by 2029. That is a CAGR of 19.5%.                                        

One company riding this solar surge is Oswal Pumps Limited, which is now coming out with its IPO. Now, let’s dive into the Oswal Pumps IPO, from what the company does to IPO details, strengths and risks, how the money will be used, and the financials.

Introducing Oswal Pumps

Established in 2003, Oswal Pumps began as a humble player in India’s pump industry. But in just two decades, it has transformed into a vertically integrated solar pump powerhouse, growing at a CAGR of 45.07% from FY22 to FY24, based on revenue. 

Oswal manufactures everything in-house, including solar pumps, electric motors, submersible and monoblock pumps, as well as solar modules. Under the ‘Oswal’ brand, their products power agriculture, homes, and industries. They’ve supplied over 38,132 turnkey solar pumping systems under the PM Kusum Scheme as of December 31, 2024.

Initially, Oswal was just a supplier to large players like Tata Power Solar under the PM Kusum Scheme. But in 2021, the company stepped up by taking turnkey contracts on its own. By FY23 and FY24, they had become one of the largest suppliers under the scheme.

Talking about their manufacturing base, it’s a massive 41,076 sq. m facility located in Karnal, Haryana, and it ranks among the largest single-site pump manufacturing plants in the entire country as of December 31, 2024. 

As for their reach, it spans across India, with a robust network of 925 distributors as of December 31, 2024, nearly double the 473 they had just two years ago. Plus, they also export their products to 22 countries. 

The IPO Play: What’s on Offer?

This IPO is a bookbuilding offer, which comprises a fresh issue of ₹890 crore and an offer for sale of ₹497.34 crore. 

Here are all the important details that you need to know. 

Now the Question is: Where Will the Money Go?

Whenever a company hits the markets with an IPO, one question always lingers: What’s the plan for all that fresh capital?

For Oswal Pumps, the net proceeds will be used to fund capital expenditure of the company, to invest in their wholly-owned subsidiary, prepayment/repayment of debt, and for general corporate purposes. 

Moving on to the next step. When planning to invest in an IPO, it’s important to assess the company’s strengths and weaknesses.

Is It Worth Investing? Strengths That Matter 

Here are some strengths of Oswal Pumps as per their Red Herring Prospectus (RHP):

Industry Positioning

Oswal is among the largest suppliers of solar-powered agricultural pumps under the PM Kusum Scheme. Their integration across the value chain gives them massive control over cost, quality, and delivery.

In-House Everything

They build it all: winding wires, cables, castings, solar cell cutting, and structures. Even solar modules (since Jan 8, 2024, via Oswal Solar Structure Pvt Ltd). That means fewer bottlenecks and more consistency.

End-to-End Expertise

Oswal Pumps doesn’t just make solar pumps. It has complete control over the entire value chain. From sourcing and refining raw materials to designing, manufacturing, assembling, testing, packaging, and finally installing the systems, every step is handled in-house. This full-stack control gives the company a sharp edge on quality, cost, and delivery.

Scale & Speed

Their Karnal plant is modern and massive, with cutting-edge testing and assembly lines. This ensures their products meet global standards before they’re boxed and shipped.

Product Diversity

From agricultural pumps to grid-connected submersibles and solar modules to motors, Oswal serves residential, industrial, and export markets. This diversification enables the company 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.

Risks That Deserve Attention

Every company has its cloudy days. Here are a few risks as per the company’s RHP that you should know:

Heavy Reliance on Government Tenders

A big chunk of the company’s revenue comes from PM Kusum Scheme contracts, which are awarded on a tender basis by the state and central governments. PM Kusum Scheme contributed 78.50% and 44.77% of the company’s revenue as of December 31, 2024 and FY24, respectively.  

If government policy shifts or funding dries up, Oswal’s pipeline could feel the heat.

Agriculture-Centric Revenue

Over 96.55%, 96.06%, 90.84% and 87.03% of the company’s revenue as of December 31, 2024, FY24, FY23 and FY22, respectively, comes from the agriculture sector. Crop cycles, rainfall, rural capex, and any disruption here could hurt the company’s business and financial condition.

Geographic Concentration

The majority of the sales are concentrated in Haryana, Maharashtra, Uttar Pradesh, and Rajasthan. Any regional disruptions in these states can affect the company’s operations and business. 

Customer & Supplier Dependence

The contribution of the top 10 customers to the company’s revenue has been increasing in recent years. This greater reliance on a few large customers can be risky, as losing even one or facing unfavourable terms can affect their revenue. 

Plus, raw material supply (especially copper and solar cells) depends on a few vendors with no firm contracts. Such high dependence on customers and suppliers can impact the company’s business. 

Financial Exposure

High trade receivables, worth ₹711.1 crore as of December 31, 2024 and rising financial liabilities (₹190.16 crore as of December 31, 2024, and ₹148.81 crore as of March 31, 2024) are worth monitoring.

The Financial Scorecard So Far 

Let’s check the consolidated financial performance of the company so far. 

*All figures are in ₹ crores.  

Final Thoughts: Should You Watch This One?

India’s solar pump industry is booming, driven by green goals and government support. Oswal Pumps stands out as a major integrated player with robust growth, diversified products, and scale.

Still, its reliance on government schemes, agri-sector demand, customer concentration and regional exposure poses real business risks.

So don’t go by buzz or hearsay. Read the RHP, know your risk appetite, and take an informed call!

FAQs

1. What’s the total issue size of the Oswal Pumps IPO?

The IPO consists of a fresh issue of ₹890 crore, along with an Offer for Sale (OFS) of 0.81 crore shares.

2. How do I know if my Oswal Pumps IPO order went through?

You’ll receive a confirmation from your broker or investing app once your application is submitted to the exchange. Keep an eye on your messages or emails.

3. What are the open and close dates for the Oswal Pumps IPO?

The IPO opens for subscription on June 13, 2025, and closes on June 17, 2025. 

4. When will the allotment for Oswal Pumps shares be announced?

The basis of allotment is expected to be finalised on June 18, 2025. Refunds and demat credit should happen by June 19, with a listing on June 20.

5. Who’s handling the IPO allotment and application process?

The registrar for this IPO is MUFG Intime India Private Limited (Link Intime).

6. On which exchanges will Oswal Pumps IPO be listed?

The shares are proposed to be listed on both BSE and NSE, with the tentative listing date set for June 20, 2025.