Oswal Pumps IPO: GMP, subscription status, other key details. Apply or not?

Mint

15 hours ago

Oswal Pumps IPO: The initial public offering (IPO) of pump manufacturer and distributor, Oswal Pumps Ltd, was launched on Friday and received decent demand from investors. Oswal Pumps IPO is a mainboard IPO.
The three-day subscription period of Oswal Pumps IPO began on June 13 and will end on June 17. Oswal Pumps IPO allotment date will likely be June 18, and the IPO listing date is expected to be June 20. The equity shares of the company will be listed on both the stock exchanges - BSE and NSE.
The company plans to raise ₹ 1,387.34 crore from the public issue, which is a combination of fresh issue of 1.45 crore equity shares worth ₹ 890 crore, and an offer-for-sale (OFS) component of 81 lakh shares amounting to ₹ 497.34 crore.
Oswal Pumps IPO price band is set at ₹ 584 to ₹ 614 per share. The IPO lot size is 24 shares, and the minimum investment amount required by retail investors is ₹ 14,016.
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 IPO registrar. Oswal Pumps IPO
Here's a look at Oswal Pumps IPO GMO, subscription status, review, other details:
Oswal Pumps IPO has been subscribed 42% so far. The public issue received bids for 67.83 lakh equity shares as against 1.62 crore shares on offer, according to data on NSE as on Friday, June 13, the first day of the bidding process.
The retail portion was subscribed 45%, while the Non Institutional Investors (NII) category was booked 79%. The Qualified Institutional Buyers (QIBs) portion received 8% subscription so far.
Oswal Pumps shares are showing a muted trend in the grey market premium (GMP). According to stock market experts, Oswal Pumps IPO GMP today is ₹ 40 per share. This indicates that Oswal Pumps shares are trading at ₹ 654 apiece in the grey market, which is at a premium of 6.51% to the issue price of ₹ 614 per share.
Oswal Pumps is the fastest growing vertically integrated solar pump manufacturer in India, in terms of revenue growth between FY22-FY24. The company has delivered robust Revenue, EBITDA and PAT CAGR of 44%,103% and 134% between FY22-9MFY25 respectively. It currently has an order book of ₹ 1,100 crore and an additional bid pipeline of ₹ 3,200 crore indicating decent growth visibility in the coming years.
'At the upper price band of ₹ 614, on post issue capital basis, the IPO is valued at 9MFY25 annualized P/E and EV/EBITDA multiple of 24.2x and 16.4x respectively, which is at a discount to its closest peer Shakti Pumps. We recommend 'Subscribe' to the issue,' said Nirmal Bang.
Rajan Shinde, Research Analyst, Mehta Equities believes Oswal Pumps IPO brings investors an opportunity to invest in a high-growth, vertically integrated player in the solar pump manufacturing space.
'On valuation parse on upper price band of ₹ 614, the issue is asking a market cap of ₹ 6,998 crore. Based on annualized FY25 annualised earnings and fully diluted post-IPO paid up capital, the company is asking for a PE 24.2x which we feel reasonable relative to industry peers which are trading at an average of 42x,' Shinde said.
As one of the largest suppliers of solar-powered agricultural pumps under the PM-KUSUM scheme, he believes the company is well positioned to benefit from policy tailwinds and the accelerating shift toward sustainable irrigation solutions.
Hence, Shinde recommends investors to subscribe to the Oswal Pumps IPO for long-term perspective.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.