Oswal Pumps shares to list on Friday, experts see 10-15% listing gain

Oswal Pumps shares to list on June 20. 

Oswal Pumps shares are set to list on the stock exchanges on Friday, after its initial public offering (IPO) was subscribed 34.42 times in the primary market.

The company, which started operations in 2003 with the manufacturing of low-speed monoblock pumps, has since expanded into grid-connected submersible pumps and electric motors.

Mahesh M Ojha, AVP – Research and Business Development at Hensex Securities, said the stock is likely to list at a premium of 8-12 percent over the upper price band of Rs 614.

He said the company's leadership in the solar pump segment, linkages with government schemes like PM-KUSUM, and a consistent execution track record support a justified listing premium. "Long-term investors may consider holding the stock given its scale, market share and alignment with India’s renewable energy and agri-infrastructure goals," Ojha said.

He added that investors who entered the issue for listing gains may consider partial profit booking if the stock opens above Rs 675, while retaining some exposure could be beneficial amid expectations of a potential re-rating. He advised new investors to wait for price stability post-listing, citing broader market volatility and possible initial selling pressure.

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Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said the issue was fully priced at the upper band, valuing the company at a price-to-earnings (P/E) ratio of 24.2x and EV/EBITDA of 22.8x, with a post-issue market capitalisation of Rs 6,998.2 crore. "We had assigned a long-term Subscribe rating to the IPO. Investors with a long-term view may continue to hold for better returns," Solanki said.

Prashanth Tapse, Research Analyst at Mehta Equities, noted that despite volatile market conditions, the mainboard IPO received strong investor interest, particularly from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs).

He said the investor response reflects confidence in the company’s fundamentals and long-term growth potential. "Attractive valuations, a diversified product portfolio across agriculture, industrial and domestic segments, and the company’s alignment with government initiatives in infrastructure and rural development supported the robust demand," Tapse said.

He expects a listing gain of 10–15 percent and advised allotted investors to hold the stock for the long term, citing the company’s position in key structural growth areas. "Non-allotted investors may consider accumulating on dips post-listing, especially in case of short-term market weakness," he added.

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