Oswal Pumps Ltd IPO

About Oswal Pumps Limited IPO

Oswal Pumps Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 11,312,000 equity shares and a fresh issue aggregating up to ₹1,000 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Oswal Pumps Limited IPO

• Funding certain capital expenditure of the company.
  
• Investment in their wholly-owned subsidiary, Oswal Solar, in the form of debt or equity, for funding the setting up of new manufacturing units at Karnal, Haryana.
  
• Pre-payment/re-payment, in part or full, of certain outstanding borrowings availed by the company.
  
• Investment in their wholly-owned subsidiary, Oswal Solar, in the form of debt or equity, for repayment/prepayment, in part or full, of certain outstanding borrowings availed by Oswal Solar.
  
• General corporate purposes.
  

Industry Outlook

Indian pump industry has seen an 11.2% CAGR growth in imports from ₹8,420 crores in fiscal 2020 to ₹12,880 crores in fiscal 2024. China is the largest exporter of pumps, exporting 18% of the total pump imports to India, followed by Germany (17%) and USA (11%).

The Indian pump market was ₹21,470 crores in fiscal 2024 and is expected to reach ₹38,160.00 crores by fiscal 2029, growing at a CAGR of 12.2% between fiscal 2024-29.

The Indian monoblock pumps market is expected to grow at a CAGR of 7% during fiscal 2024-2029, from ₹4,610 crores in fiscal 2024 to ₹6,480 crores in fiscal 2029.

The Indian solar pump market has witnessed a remarkable growth trajectory increasing from ₹210 crores in fiscal 2019 to ₹5,180 crores in fiscal 2024 and is expected to reach ₹21,820 crores by fiscal 2029, growing at a CAGR of 33.3% over fiscal 2024-2029. The growth is expected to contribute to approximately 57% of total pumps market by F29. The market growth is largely driven by government initiatives; and incentives like PM-KUSUM, enabling farmers to get subsidised solar pumps.

The Indian agricultural solar pump market accounted for 99% of the total market in fiscal 2024. By fiscal 2029 this share will be approximately 90% of the market.

Company Information

Oswal pumps has been manufacturing solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules for the last 21 years, which they sell under the ‘Oswal’ brand.

They are one of the few fully integrated Turnkey Solar Pumping Systems providers in India with the capability to manufacture solar-powered agricultural pumps, solar modules and pump controllers and provide installation services for such systems.

Oswal Pumps Limited caters to the diverse requirements of end-users in the agricultural sector working in irrigating fields; the residential sector with respect to maintaining gardens and fountains, extracting water, supplying water to overhead tanks and cleaning households and small establishments; commercial premises such as shopping malls, offices and hotels; industries that use their pumps in boilers and water treatment, water transportation and sewage applications and use their electric motors in machine applications and cooling tower systems.

Risks of Oswal Pumps Limited IPO

• They derive a signification portion of their revenues from the supply of Turnkey Solar Pumping Systems which are awarded on a tender basis by the state and central government institutions under the PM Kusum Scheme. However, they cannot assure that the government will continue this scheme or that their bids will be accepted and future contracts will be awarded to them. Any reduction in government funding for this scheme or their inability to obtain contracts may have an adverse impact on their business, results of operations, financial condition and cash flows.

• Their business is dependent on the performance of the agricultural sector. Any adverse changes in the conditions affecting the agricultural sector may adversely impact their business, results of operations, financial condition and cash flows.

• They derive a significant portion of their revenues from the sale of their products in the states of Haryana, Maharashtra, Uttar Pradesh and Rajasthan. Consequently, any adverse developments affecting their operations in such regions, could have an adverse impact on their business, results of operations, financial condition and cash flows.

Anchor Investor Information

The Anchor Investor Bid/Offer Period will be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

IIFL Securities Limited
Axis Capital Limited
CLSA India Private Limited
JM Financial Limited
Nuvama Wealth Management Limited

Registrar for the IPO is Link Intime India Private Limited

Business Model

The company earns its revenue through the following sources:

• Manufacturing and selling solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules.

Company Growth Trajectory

Between April 1, 2021 and March 31, 2024, they have exported their products to 17 countries in the Asia-Pacific, Middle East and North Africa regions. In fiscals 2024, 2023 and 2022, their revenue from exports was ₹35.07 crores, ₹41.70 crores and ₹36.99 crores, representing 4.80%, 11.64% and 10.86% of their revenue from operations (excluding revenue from traded goods, discount incentives and other operating revenue), respectively. Their revenue from operations increased from ₹360.384 crores in FY 22 to ₹761.234 crores in FY 24. Their PAT also soared from ₹169.29 crores in FY 22 to ₹976.65 crores in FY 24.

Company Market Position

Oswal Pumps Limited is the fastest-growing vertically integrated solar pump manufacturer in India in terms of revenue growth during the last three fiscals, with their revenues growing at a CAGR of 45.07% between fiscal 2022 and fiscal 2024.

They operate a manufacturing facility located at Karnal, Haryana, which is one of India’s largest single-site facilities manufacturing pumps, covering a total land area of 41,076 square meters as of March 31, 2024.

How To Check Allotment Status of Oswal Pumps Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:

• Visit the BSE website
  
• Click on “Investor Services” and choose “Application Status Check”
  
• Choose the issue type — Equity or Debt (Equity in this case)
  
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Oswal Pumps Limited
  
• Enter your application number or PAN number
  
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
  

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Link Intime India Private Limited website
  
• Choose “Public Issues” from the “Investor Services” drop-down
  
• Select Oswal Pumps Limited from the drop-down
  
• Enter your PAN number or Application number
  
• Click on “Submit” to know the allotment status