Oswal Pumps IPO, a solar powerhouse backed by the PM Kusum scheme, to open on June 13; check key details

Oswal Pumps, one of the leading manufacturers of solar-powered and grid-connected pumps, electric motors, and solar modules, will launch its ₹1,387.3 crore initial public offering (IPO) on June 13. The IPO will remain open for subscription till June 17. The IPO is a combination of a fresh issue and an offer for sale of 2.2 crore shares.

Incorporated in 2003, Oswal Pumps has diverse product offerings serving farmers, households, commercial establishments, and industries for applications ranging from field irrigation to water treatment and machinery cooling. The company markets its products under the ‘Oswal’ brand.

A major growth driver for the company came in 2019 with the launch of the PM Kusum Scheme, which promotes the installation of 1.40 million solar agricultural pumps and solarisation of 3.5 million existing grid-connected pumps. The company capitalised on this by manufacturing solar-powered pumps.

Here are key things to know about Oswal Pumps ahead of its IPO opening this week:

Oswal Pumps IPO details

Oswal Pumps IPO aims to raise ₹1,387 crore through its public issue. The IPO is a fresh issue of over 1.44 crore shares and an offer for sale of 81 lakh shares by promoters.

The company has fixed the price band of the issue at ₹584 to ₹614 per share. The lot size, or the minimum bid quantity to apply for the issue, is 24 shares. This equates to a minimum investment amount of ₹14,736 per lot at the upper end of the price band for retail investors.

Oswal Pumps has appointed CLSA India Private Limited, IIFL Capital Services Limited, Axis Capital Limited, JM Financial Limited, and others as book-running lead managers of the IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.

Oswal Pumps IPO: Important dates

Oswal Pumps IPO will remain open for bidding from 13 to 17 June. After the bidding is closed, the allotment of shares is expected to be finalised on June 18.

Successful bidders can expect the shares to be credited to their demat accounts by June 19, with others receiving refunds on the same day. Oswal Pumps shares are scheduled to list on the BSE and NSE on June 20.

Oswal Pumps IPO Objective

The company plans to raise ₹1387.34 crore via a fresh issue. Net proceeds from the IPO will be used towards the following objectives:

• Capital expenditure: The company will use ₹89.86 crore out of the net proceeds towards capital expenditures.
• Investment in subsidiary: The company will use ₹272.75 crore to invest in its subsidiary, Oswal Solar, to set up new manufacturing units.
• Repayment of outstanding borrowings: ₹280 crore will be used for pre-payment/repayment of certain outstanding borrowings.
• Repayment of subsidiary loan: ₹31 crore will be used to repay outstanding borrowings availed by its subsidiary.
• General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes and strategic initiatives.

Financial snapshot

(₹ crore)FY22FY23FY249MFY25Revenue360.38385.04758.571,065.67Total assets221.84252.30511.281,096.01Net profit16.9334.2097.67216.71EBITDA38.5257.82150.12321.01

About the company

Oswal Pumps Limited is one of the leading vertically integrated manufacturers of solar-powered and grid-connected pumps, electric motors, and solar modules. The company is a key beneficiary of the PM Kusum Scheme, which was launched in 2019 to promote the installation of 1.40 million solar agricultural pumps and solarisation of 3.5 million existing grid-connected pumps.

The company initially supplied its solar-powered pumps to companies securing orders under the PM Kusum Scheme, like Tata Power Solar Systems and others, but later started offering complete turnkey solar pumping systems directly or via third parties.

As of December 31, 2024, the company has executed orders for 38,132 solar pumping systems directly under the PM Kusum Scheme. It has also supplied 145,578 pumps to players participating under the scheme, and 7,255 pumps as turnkey systems through participating players.

Oswal Pumps operates manufacturing facilities in Karnal, Haryana, strategically located near major agricultural regions. As of December 31, 2024, the facility had an annual installed capacity of 1,160.07 MT for stainless steel pumps, 2,366.04 MT for cast iron pumps, 1,314.72 MT for stainless steel motors, and 561.60 MT for cast iron motors, supported by advanced machinery. The company also manufactures solar modules through its wholly owned subsidiary, Oswal Solar Structure Private Limited, with an annual capacity of 570 MW.

The company has consistently expanded its distribution network in India from 473 to 925 distributors in less than three years. This expansion has helped the company increase the brand’s presence in the market and serve retail customers. Additionally, the company exports its products to 22 countries in the Asia-Pacific, Middle East and North Africa regions. In FY24, export revenue was ₹41.69 crores, representing 11.64% of total revenue.

Sector overview and market opportunity

India’s solar pump market has strong growth potential, with 0.122 crores of pumps sanctioned under the PM Kusum Scheme, but only 0.077 crore (63%) installed as of March 2025. States like Maharashtra, Haryana, Rajasthan, Uttar Pradesh, and Punjab make up 84% of sanctioned pumps. With 14.4 crore farmers in India—11.4 crore lacking pumps and 30% still using diesel—there is a large untapped demand for solar irrigation solutions.

Oswal Pumps aims to leverage this opportunity by expanding its operations in high-potential states such as Maharashtra, Karnataka, and Madhya Pradesh. The company plans to actively participate in government bidding processes as well as grow its distributor network to strengthen market and brand presence. The company also intends to offer solar-powered pumps directly to farmers who prefer to adopt solar technology without waiting for subsidies. By tapping subsidised and direct-sale markets, the company aims to grow rapidly and strengthen its position in the solar pump market.

Strengths and Opportunities

• The company is the fastest-growing vertically integrated solar pump manufacturer in India, achieving a CAGR of 45.07% between FY22 and FY24. It supplied 45,545 solar pumping systems directly under the PM-KUSUM Scheme as of April 30, 2025, with strong order backlogs in major agricultural states like Haryana, Maharashtra, Rajasthan, and Uttar Pradesh.

• While Oswal Pumps initially derived a significant 72.28% of its revenue from Haryana in FY24, it has strategically diversified its market presence in recent years. By 9MFY25, Haryana’s share reduced to 34.75%, with Maharashtra’s contribution rising to 44.30%. The company has also expanded into other key agricultural states like Uttar Pradesh, Rajasthan, and Punjab, alongside establishing a presence in 22 international markets, including Australia, Egypt, the UAE, and Saudi Arabia, reducing its dependence on any single geography.

Risks and Threats

• The company derives a major share of its revenue from the PM Kusum Scheme, accounting for 78.50% of operational revenue in 9MFY25. While the company has secured 12 contracts under the scheme in the last 3 fiscal years, its scheduled conclusion in December 2026 and uncertainties around future funding or contract delays pose a material risk to its business and financial performance.

• The company’s profitability remains vulnerable to fluctuations in copper and solar cell prices, which accounted for 11.67% and 25.87% of its material costs in 9MFY25, respectively, with the share of solar cells rising sharply from 4.31% in FY24. The company’s limited ability to fully pass on these cost increases, coupled with its relative inexperience in sourcing solar cells, could potentially impact margins, product quality, and customer satisfaction.