Oswal Pumps IPO subscribed 5x so far on Day 3: Check GMP and other details

The initial public offering (IPO) of Oswal Pumps Ltd. has been subscribed 5.27 times so far on the third and final day of bidding on Tuesday, June 17, with demand primarily coming from non-institutional bidders.

The ₹890 crore IPO of the integrated solar pump manufacturer will close for subscription today.

The NII portion was subscribed 15.18 times so far, while the retail individual investor quota was booked 1.91 times. The qualified institutional investors portion was subscribed 3.68 times, as per data from exchanges.

The grey market premium (GMP) for Oswal Pumps stood at ₹57 on June 17, indicating a likely listing gain of 9% over the issue price of ₹614.

However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

The company is selling its shares in a fixed price band of ₹584 - ₹614 per share for its initial share sale, which comprises of fresh issue of ₹890 crore and an offer for sale of 0.81 crore shares one of the promoters Vivek Gupta who currently holds a 25.17% stake in the company.

From the proceeds, ₹89.86 crore will be allocated for capital expenditure, ₹273 crore will be invested in subsidiary Oswal Solar to set up a new manufacturing facility in Haryana, ₹280 crore will go towards debt repayment, and ₹31 crore will be used to repay debt in Oswal Solar.

Incorporated in 2003, Oswal Pumps 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.

As of August 31, 2024, the company had executed orders for 26,270 turnkey solar pumping systems directly under the PM-KUSUM Scheme for states like Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.

The company posted a revenue of ₹758.57 crore in FY24, up from ₹385.04 crore in the previous year. Net profit rose to ₹97.67 crore from ₹34.20 crore.

For the nine months ended December 2024, the company reported a revenue of ₹1,065.67 crore and a net profit of ₹216.71 crore.

IIFL Capital Services, Axis Capital, CLSA India, JM Financial, Nuvama Wealth Management are the book running lead managers, while MUFG Intime India (Link Intime) is the registrar for the issue.

The allotment for the Oswal Pumps IPO is expected to be finalised on June 18, while the company will be listing on BSE, NSE with a tentative listing date fixed as June 20.

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