Shares of Oswal Pumps Ltd. witnessed a sharp decline of 8% on Monday, slipping below their IPO issue price of ₹614 and hitting an intraday low of ₹580 on the BSE. The stock, which debuted on June 20 with a modest 3% premium, has now corrected over 11% from its post-listing high of ₹649.15.
📉 Market Reaction and Investor Sentiment
Despite a strong IPO subscription—34.42 times overall, with 88.08 times in the QIB category—the stock’s recent performance reflects profit booking and broader market volatility. The initial enthusiasm appears to have cooled, with analysts citing valuation concerns and sector-specific headwinds.
At one point during Monday’s session, the stock recovered marginally to trade at ₹627.95, but still hovered near its listing price.
🏭 Company Fundamentals and Growth Outlook
Founded in 2003, Oswal Pumps manufactures a wide range of products including solar pumps, submersible pumps, monoblock pumps, electric motors, and control panels. The company has executed over 26,000 solar pumping systems under the PM-KUSUM scheme, contributing significantly to its recent revenue growth.
- FY24 Revenue: ₹758.57 crore (up from ₹385.04 crore in FY23)
- FY24 Net Profit: ₹97.67 crore (up from ₹34.20 crore)
- 9M FY25 Revenue: ₹1,065.67 crore
- 9M FY25 Net Profit: ₹216.71 crore
💰 IPO Proceeds and Utilization
The ₹1,387.34 crore IPO included a fresh issue and offer-for-sale. Funds are earmarked for:
- ₹89.86 crore for capital expenditure
- ₹273 crore investment in subsidiary Oswal Solar
- ₹280 crore for debt repayment
- ₹31 crore to repay Oswal Solar’s debt
🧭 What’s Next?
Chairman and MD Vivek Gupta remains optimistic, stating that pump capacity utilization is at 80–85% and the company expects to turn cash positive by FY26. However, analysts caution that heavy reliance on government schemes like PM-KUSUM may pose concentration risks.
Stay tuned for more updates on India’s IPO and equity markets.
