Oswal Pumps Set To Ride Solar Boom With IPO Nod

The Securities and Exchange Board of India (SEBI) has approved the issuance of an Initial Public Offering (IPO) by Oswal Pumps. This move paves the way for the Karnal-based solar pump company to enter the stock market. The approval comes at a time when several solar companies and solar pump manufacturers have already entered the stock market to raise capital and expand their operations.

The company filed its Draft Red Herring Prospectus (DRHP) on September 20, 2024, and plans to raise more than Rs 500 crore through the net proceeds of the fresh issue.

Funds to Expand Solar Module Manufacturing

Break up of planned use of net proceeds.

As per the details provided by the company, the majority of the net proceeds will be invested in its new venture, Oswal Solar, to establish a solar module manufacturing plant in Karnal. The company has allocated Rs 419.16 crore for this purpose. Additionally, Rs 26 crore has been earmarked for Oswal Solar to repay its borrowings. Other areas of the funding plan include financing certain capital expenditures. The solar module plant will help the firm integrate backward for its solar pumps business, which has been performing well, and is set to do better as PMKUSUM moves into high gear.

The company has planned to retain the majority of paid-up equity shares by the promotors of the organisation including Vivek Gupta and other companies owned by him and other promotors. These firms include-Shorya Trading Company Pvt Ltd and Ess Aar Corpoirate Services Pvt Ltd.

Equity Share Plan Of Oswal Pumps. Source: DRHP

Financial Strength

Oswal Pumps has demonstrated robust financial growth over the years. The company reported a total profit of Rs 17.2 crore on revenues of Rs 360 crore in the fiscal year 2021-2022, Rs 34.7 crore (revenues of Rs 385 crores) in 2022-2023, and Rs 98.8.57 crore (revenues of 761 crore) in 2023-2024. By the end of the 2023-2024 fiscal year, the company’s net worth stood at Rs 160 crore as per the DRHP furnished by the firm before SEBI. By August 2024, it had supplied 26,270 Turnkey Solar Pumping Systems directly under the PM Kusum Scheme for several states.

Profits of Oswal Pumps in the recent few years. Source: DRHP documents

About Oswal Pumps

The company manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors, including induction and submersible motors, as well as solar modules, all sold under the ‘Oswal’ brand.

The firm operates two manufacturing facilities in Karnal, Haryana. One facility is dedicated to producing pumps and motors, while the other focuses on manufacturing solar modules.

Other listed solar firms

In recent years, several solar companies have ventured into the stock market. During 2024-25, leading solar module makers such as Waaree Energies and Premier Energies entered the stock market and have delivered stellar returns to investors.

In addition to solar module manufacturers and solar project developers, solar pump companies like Shakti Pumps have also established a strong presence in the market, performing well in the public sphere. The entry of Oswal Pumps into the stock exchange is expected to further strengthen the presence of solar companies and provide investors with more opportunities to invest in the energy sector.

Want to know more about Oswal Pumps. Watch our interview with the management here-