The ₹1,387-crore initial public offering (IPO) of Oswal Pumps, being offered at a price band of ₹584 -₹614 per share, started for subscription on June 13 and will close on June 17. The public issue of the Haryana-based water and solar pumps manufacturer was subscribed 42% on the first day of bidding as investors applied for 67,83,552 crore equity shares worth ₹416.510 crore compared to the offer size of 1,62,12,980 crore shares, the data on exchanges showed.

As per the exchange data, the public issue was subscribed 0.45 times in the retail category, 0.08 times in the qualified institutional buyer (QIB) segment, while the quota set aside for non-institutional investor (NII) was booked 0.79 times.

The public issue is a combination of fresh issue and offer for sale (OFS), aiming to raise ₹890 crore by issuing 1.45 crore fresh equity shares and another ₹497.34 crore by selling shareholders. The lot size for the public offer is 24, which means the minimum application amount for retail investors would be ₹14,736 for one lot.

Oswal Pumps intends to use capital raised from issuance of fresh equities for investment in its subsidiary, repay debts, fund capital expenditure of the company, and meet general corporate purposes. It proposes to use ₹280 crore for payment of certain loans availed by the company; investment of ₹272.76 crore in the wholly-owned subsidiary, Oswal Solar, in the form of debt or equity, for funding the setting up of new manufacturing units at Karnal, Haryana. Besides, ₹89.86 crore will be utilised for funding certain capital expenditure of the company.

The allotment for the Oswal Pumps IPO is expected to be finalised on June 18, while the tentative date for listing of shares on the BSE and NSE is June 20, 2025.

Raises ₹416.20 crore from anchor investors

A day ahead of opening of the IPO, i.e. June 12, Oswal Pumps garnered ₹416.20 crore from anchor investors by allocating 67,78,533 equity shares at ₹614 per share. Some of the marquee Institutions that participated in the anchor includes Societe Generale, BNP Paribas, Smallcap World Fund Inc, ICICI Prudential, Aditya Birla Sunlife, Kotak Mahindra MF, Quant MF, Amundi Funds, 360 One, Motilal Oswal MF, Bandhan Small Cap Fund, Edelweiss MF, Troo Capital, Nuvama MF, Sundaram MF, Edelweiss Life Insurance, Mahindra Manulife, etc.

Out of the total allocation of 67,78,533 equity shares to the anchor investors, 29,62,821 equity shares were allocated to 11 domestic mutual funds through a total of 15 schemes, i.e. 43.71% of the total anchor book size.

Brokerages recommend 'Subscribe’ to the IPO

Most brokerage, including Aditya Birla Capital, SBI Securities, Nirmal Bang, Arihant Capital, have recommended ‘Subscribe’ to the IPO, citing its spread across broad regions in India’s agricultural, residential and industrial spaces for sustainable pumping solutions and its capacity expansion plan place it at robust position to undertake near term industry growth and tailwinds.

GMP drops to 5%

The grey market premium (GMP) for Oswal Pumps' IPO has declined to 5.2%, with shares now trading at ₹646, up ₹32 per share over the issue price of ₹614. The Oswal Pumps IPO GMP touched its peak of ₹88 on June 11, which slipped to ₹71 on June 12, further to ₹53 on June 13, and ₹32 on June 14.