Oswal Pumps IPO: Issue subscribed 34.4x; GMP rises to ₹68 per share

The ₹1,387-crore initial public offering (IPO) of Oswal Pumps was subscribed 34.42 times on June 17, the final day of bidding, driven by strong response from qualified institutional buyers (QIBs) and non-institutional investors (NIIs). The allotment for the Oswal Pumps IPO is expected to be finalised on June 18, while the tentative date for listing of the shares on the bourses is June 20, 2025.

The portions reserved for QIBs and NIIs were booked 88.08 times and 36.70 times, respectively, while the quota reserved for retail investors was subscribed 3.60 times. The Oswal Pumps IPO was reserved 50% for QIBs, 15% for NIIs, and remaining 10% for retail investors, according to the document filed with the Sebi.

The public issue of the Haryana-based water and solar pumps manufacturer received bids for 55.80 crore equity shares worth ₹34,263.8 crore compared to the offer size of 1.62 crore shares, data on exchanges showed.

The public issue of Oswal Pumps was a combination of a fresh issue of 1.45 crore shares worth ₹890 crore and offer for sale of 0.81 crore shares amounting to ₹497.34 crore. The price band for the IPO was ₹584-614 per share.

The lot size for the public offer was 24, and the minimum application amount for retail investors was ₹14,736 for one lot.

Oswal Pumps intends to use the capital raised 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.

Ahead of the opening of the IPO, Oswal Pumps raised ₹416.20 crore from anchor investors by allocating 67,78,533 equity shares at ₹614 per share on June 12. 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.

GMP rises to 11%

The grey market premium (GMP) for Oswal Pumps' IPO has surged over 11%, with shares now trading at ₹682, up ₹68 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 ₹43 on June 14, according to data available on the InvestorGain.com, an IPO tracker platform.  

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