Ahead of the listing, the IPO’s grey market performance had indicated a GMP of Rs 41, or 6.68%, implying a potential listing around Rs 655 per share. Instead, the stock settled in the low Rs 630s, even as the Sensex and Nifty gained 0.3% each in morning trade.
The Rs 1,387.34-crore IPO, which ran from June 13–17, saw strong demand, particularly from institutional investors. The QIB segment was subscribed 88.08 times, NIIs 36.70 times, and retail investors 3.60 times. The offer comprised a fresh issue of Rs 890 crore and an offer-for-sale of Rs 497.34 crore by promoter Vivek Gupta.
What analysts are saying
“Despite the recovering mood in the market and robust response from all sets of investors, Oswal Pumps’ listing was well below our expectations,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities. “We continue to believe the IPO demand was driven by attractive valuation levels, offering reasonable long-term upside potential along with a well-diversified product portfolio across agriculture, industrial, and domestic water solutions.”
Tapse added, “We also see the company’s strategic positioning benefiting from ongoing government infrastructure and rural development initiatives, especially those focused on water management and irrigation. We view Oswal Pumps as a compelling long-term investment opportunity, well-aligned with the government’s continued emphasis on rural electrification and the promotion of solar-powered irrigation systems.”
Mehta Equities has recommended a ‘Hold’ for investors allotted shares in the IPO. For those who missed out, Tapse advised: “Consider accumulating on any dips post-listing, particularly if broader market sentiment causes short-term volatility. The business offers a strong combination of sectoral tailwinds and value-based fundamentals.”
Gaurav Garg, from Lemonn Markets Desk, echoed the sentiment: “Oswal Pumps Limited made its stock market debut today, June 20, 2025. The company’s shares opened at Rs 634 on the NSE and Rs 632 on the BSE, registering a modest premium of 3.26% and 2.93%, respectively, over the issue price of Rs 614.”
“Backed by strong fundamentals, a solid anchor book, and robust institutional participation, Oswal Pumps has drawn positive market sentiment. Listing gains are expected to be in the range of 8–12%, with long-term prospects buoyed by the government’s thrust on rural electrification and solar-powered irrigation systems,” Garg said.
Business snapshot and use of funds
Founded in 2003, Oswal Pumps has evolved from manufacturing low-speed monoblock pumps to offering a full suite of submersible pumps, electric motors, and solar water systems. The company has installed over 26,000 solar pumps under government schemes and exports to 17 countries.
In the nine months ending December 2024, Oswal reported revenue of Rs 1,067 crore and net profit of Rs 216 crore.
The IPO proceeds will be used for a mix of debt repayment and capacity expansion. The company plans to allocate Rs 280 crore for loan repayments, Rs 272.76 crore to invest in its subsidiary Oswal Solar, and Rs 89.86 crore for capital expenditure, including new manufacturing units in Karnal, Haryana.
Anchor investors who participated ahead of the IPO include Societe Generale, BNP Paribas, Smallcap World Fund Inc., ICICI Prudential, Kotak Mahindra MF, Quant MF, Amundi Funds, and others, committing Rs 416.20 crore at the upper end of the price band.
Also read | Muted Debut: Oswal Pumps shares list at a 3% premium over IPO price
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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