Oswal Pumps IPO: Check day 3 bidding subscription status, GMP, allotment date & more

The initial public of Oswal Pumps IPO saw a decent response from the investors during the third and final day of the bidding process, particularly from intuitional and HNI investors. The IPO was booked 40 per cent on day and ended day two with 1.55 times subscription.

Oswal Pumps is offering shares priced between Rs 584 and Rs 614 each. Investors must apply for a minimum lot size of 24 shares, with corresponding multiples. The IPO seeks to raise Rs 1,387.34 crore, including a fresh issue of Rs 890 crore and an offer-for-sale of 81 lakh shares worth Rs 497.34 crore.

According to the data, the investors made bids for 20,20,33,728 equity shares, or 12.46 times, compared to the 1,62,12,980 equity shares offered for the subscription by 1.55 pm on Tuesday, June 17, 2025. The bidding for the issue which kicked off on Friday, June 13, shall conclude today.

The allocation for non-institutional investors (NIIs) was subscribed 23.54 times per cent, while the portion reserved for qualified institutional bidders (QIBs) saw a subscription of 22.24 times. However, the quota set aside for retail investors was booked only 2.40 times as of the same time.

Incorporated in 2003, Karnal-based Oswal Pumps manufactures and distributes a variety of pumps for domestic, agricultural, and industrial use. Their product line includes solar pumps, submersible pumps, and electric motors. For the nine months ending December 31, 2024, the company reported a net profit of Rs 216.71 crore on revenue of Rs 1,067.34 crore.

The grey market premium (GMP) for Oswal Pumps has experienced a decrease amid volatile conditions, with recent reports suggesting a premium of Rs 64-65 per share. This indicates a potential 11% gain for investors at listing, down from the initial GMP of Rs 85-90.

Analysts have expressed positive sentiments regarding Oswal Pumps, citing a growing demand for solar pumps and a strong business model. However, challenges such as delays in government funding and rising working capital requirements present potential risks.

Oswal Pumps is set to list at a P/E of nearly 24 times with a market cap of Rs 6,998  crore, whereas its peers namely Kirloskar Brothers, Shakti Pumps (India), WPIL, KSB and Roto Pumps are trading at P/E ratios of approximately 33-59 times, said Marwadi Financial Services.

"We assign 'subscribe' rating to this IPO as it is one of the largest suppliers of solar powered agriculturalpumps under the PM Kusum Scheme, well positioned to capitalise on strong industry tailwinds. Also, it is available at reasonable valuation as compared to its peers," it said.

The performance of Oswal Pumps shows an increase from its previous fiscal year, where it recorded a net profit of Rs 97.67 crore with revenue of Rs 761.23 crore. The company is anticipated to have a market capitalisation nearing Rs 7,000 crore post-IPO.

Oswal Pumps collected Rs 416 crore from anchor investors by allocating 67,78,533 shares at Rs 614 each. The subscription status at the end of the second bidding day reached over 1.55 times, reflecting significant interest, particularly from institutional and HNI investors.

Oswal Pumps is valued at a 9MFY25 annualized P/E of 24.2 times on post-issue capital, which appears reasonable given its robust growth trajectory and strong positioning. It has demonstrated exceptional performance with revenue, Ebitda and /PAT CAGR of 45.1 per cent, 97.4 per cent and 140.2 per cent over FY22–FY24, respectively, said Prithvi Finmart.

"While high dependence on government schemes and working capital intensity are key risks, we believe the company is well-positioned to capitalize on the rising adoption of solar pumping systems. We recommend investors to 'subscribe' to the IPO with a long-term investment horizon," it said.

As the IPO progresses, key dates to note include the closing date on June 20, with the basis of allotment expected shortly thereafter, and the anticipated listing on June 20. Investors are advised to consider expert opinions and market conditions before making investment decisions.

The lead managers for the IPO are IIFL Capital Services, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management, while MUFG Intime India is acting as the registrar. The tentative listing date is set for June 20 on both BSE and NSE. The allocation for the IPO is divided with 50 per cent reserved for qualified institutional buyers, 15 per cent for non-institutional investors, and 35 per cent for retail investors.