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Oswal Pumps IPO Day 1: Check subscription status, GMP, allotment date & more

Oswal Pumps IPO Day 1: Check subscription status, GMP, allotment date & more

Oswal Pumps is selling its shares in the price band of Rs 584-614, which could be applied for a minimum of 24 shares and its multiples to raise a total of Rs 1,387.34 crore between June 13-17.

Pawan Kumar Nahar
Pawan Kumar Nahar
  • Updated Jun 13, 2025 3:27 PM IST
Oswal Pumps IPO Day 1: Check subscription status, GMP, allotment date & more

The initial public offering (IPO) of Oswal Pumps was off to day tepid bidding from the investors during the first day of the bidding process from all the categories of the investors. The issue, which kicked off on Friday, June 13, shall close for bidding on Tuesday, June 17.

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Oswal Pumps is selling its shares in the price band of Rs 584-614 apiece. Investors can apply for a minimum of 24 shares and its multiples thereafter. It is looking to raise Rs 1,387.34 crore via IPO, which includes a fresh share sale of up to 890 crore and an offer-for-sale (OFS) of up to 81,00,000 equity shares worth Rs 497.34 crore.

According to the data, the investors made bids for 51,59,928 equity shares, or 22 per cent, compared to the 1,62,12,980 equity shares offered for the subscription by 3.05 pm on Friday, June 13, 2025. The bidding for the issue shall continue for three-days and closes on Tuesday, June 17.

The allocation for retail investors was subscribed 36 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 52 per cent. However, the quota set aside for qualified institutional bidders (QIBs) was booked only 08 per cent as of the same time.

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Incorporated in 2003, Karnal-based Oswal Pumps is a manufacturer and distributor of pumps. It offers a diverse range of products catering to domestic, agricultural and industrial applications including solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires & cables, and electric panels.

The grey market premium (GMP) of Oswal Pumps has remained seen a correction amid the volatile broader market conditions. Last heard, the company was commanding a premium of Rs 70-75 per share in the unofficial market, suggesting a 11-12 per cent listing gains for the investors. The GMP stood around Rs 85-90 a day ago.

Analysts mostly have a positive view on this issue. They are positive on rising demand for solar pumps, strong market shares, integrated business model, experience promoters, pan India dealer network and strong financials. However, delay in funds from the government, rising working capital requirements, negative cashflows, unorganised sector are some of its key risks.

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Oswal Pump demonstrates solid fundamentals with a strong foothold in the solar agricultural pump segment, underpinned by consistent revenue growth and vertical integration. A wide-ranging product portfolio and growing distribution footprint help reduce dependency on specific markets, allowing for scalability, said Mahesh Ojha, AVP Research at Hensex Securities.

"Its robust domestic distribution network and expanding presence in high-growth states further enhance its ability to monetise the sector's rising demand. Ebitda margins expanded from 10.7 per cent to 19.8 per cent between FY22 and FY24, reflecting the company's strong operational control and backward integration efforts," he said with 'subscribe for long-term' tag.

For the nine-months ended on December 31, 2024, Oswal Pump reported a net profit of Rs 216.71 crore with a revenue of Rs 1,067.34 crore. The company clocked a net profit of Rs 97.67 crore with a revenue of Rs 761.23 crore for the financial year 2023-24. Oswal Pumps shall command a market capitalization close to Rs 7,000 crore.

Oswal Pumps mobilised Rs 416 crore from anchor investors as it allocated 67,78,533 shares at a price of Rs 614 apiece. The company has reserved 50 per cent share for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation reserved for them. Retail investors will have 35 per cent of the net offer allocated towards them.

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The funds will also be directed toward debt repayment and general corporate purposes. This expansion is designed to facilitate the introduction of new products while enhancing the existing product portfolio. Oswal Pumps' integrated manufacturing and EPC solution capabilities will support in sustaining industry-leading margins and provide a competitive edge, said KR Choksey.

"The initial public offering is attractively priced at 17.1 times FY25 EV/Ebitda (based on 9MFY25 annualized figures) reflecting strong financial performance compared to peers. We expect the Company to excel due to renewable sector demand, strong execution capabilities, and rapid capacity expansions. We recommend a 'subscribe' rating for the initial issue," it said.

IIFL Capital Services, Axis Capital, CLSA India, JM Financial, Nuvama Wealth Management are the book running lead managers of the Oswal Pumps IPO, while MUFG Intime India (Link Intime) is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE with Friday, June 20 as the tentative date of listing.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jun 13, 2025 3:27 PM IST
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