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News18
a day ago
- Business
- News18
Oswal Pumps IPO: Should You Apply? Check Price, GMP, Lot Size, Reviews, Subscription Status
Last Updated: Oswal Pumps IPO: Unlisted shares of Oswal Pumps Ltd are trading at Rs 679 apiece in the grey market, which is a 10.59% premium or GMP over the upper IPO price of Rs 614. Oswal Pumps IPO Day 1: The initial public offering of Oswal Pumps Ltd opened for public subscription on Friday, June 13. Till 12:49 pm on the first day of bidding on Friday, the Rs 1,387.34-crore IPO received a 0.10 times (or 10%) subscription, garnering bids for 16,22,424 shares as against 1,58,16,581 shares on offer. The retail and NII participation stood at 0.10 times and 0.13 times, respectively. Its qualified institutional buyer (QIB) category got a 0.08 times subscription. The three-day IPO will close on Tuesday, June 17. Oswal Pumps Limited, founded in July 2023, manufactures a wide range of pumps and related products for domestic, agricultural, and industrial use. Oswal Pumps IPO Price The price band has been fixed in the range of Rs 584-614 apiece. Oswal Pumps IPO Lot Size The minimum lot size is 24 shares, requiring a retail investment of Rs 14,016 (Rs 14,736 at cutoff price). For small NII, the minimum is 14 lots (336 shares) at Rs 2,06,304; and for big NII, 68 lots (1,632 shares) at Rs 10,02,048. Oswal Pumps IPO GMP Today According to market observers, unlisted shares of Oswal Pumps Ltd are currently trading at Rs 679 apiece in the grey market, which is a 10.59 per cent premium or GMP over the upper IPO price of Rs 614. It indicates listing gains for investors on June 20, the tentative listing date. The shares will be listed on both BSE and NSE. The GMP is based on market sentiments and keeps changing. 'Grey market premium' indicates investors' readiness to pay more than the issue price. Oswal Pumps IPO: Should You Subscribe? Most analysts have given 'subscribe for long-term' rating to the IPO. They said Oswal Pumps is one of India's fastest-growing names in solar-powered solutions, and reported a CAGR of 45.1% between FY22 and FY24. The company is expected to grow at a rate of 11% in the next five years, the analysts said. However, they also mentioned some risks, including the company's dependent on its top-10 customers (who account for nearly 80% of revenue from operations), government funding changes or policy changes (as the significant portion of Oswal Pumps' revenue is derived from turnkey solar pumping systems under PM-KUSUM), and the concentration of all of its manufacturing facilities at one place (Karnal, Haryana). Giving a 'subscribe' rating, Aditya Birla Money in its IPO note said, 'Oswal Pumps Ltd (OSPL), founded in one of India's fastest-growing names in solar-powered solutions. The company has carved a niche as a fully integrated manufacturer of solar and grid-connected submersible pumps, monoblock pumps, high-efficiency electric motors, and solar modules." It said that at the upper price band, OSPL is available at a reasonable valuation of 21x at its annualised 9MFY25 EPS. 'We have a SUBSCRIBE recommendation to this issue for the long-term," it said. Another brokerage firm BP Wealth in its note said, 'Given the company's strong brand equity in solar pumps, diversified product offerings, and integrated manufacturing capabilities, it is well-positioned to capitalise on these structural growth drivers. Its robust domestic distribution network and expanding presence in high-growth states further enhance its ability to monetise the sector's rising demand." The issue is valued at a price-to-earnings (P/E) ratio of 21.2x on the upper price band based on FY25 earnings (annualised), which is relatively cheaper compared to its peers. 'We recommend a 'SUBSCRIBE" rating for this issue," it added. Other brokerages Arihant Capital, Deven Choksey, GEPL Capital, Nirmal Bang, SBI Securities, and SMIFS have given the subscribe rating to the Oswal Pumps IPO. Oswal Pumps' Financials & Comparison With Peers The company recorded one of the highest EBITDA margins among peers in FY24 (30.1% in 9MFY25), up from 10.7% in FY22, showcasing clear operating leverage gains. However, competition from established peers and its dependency on tenders for its revenue, remain key risk factors to consider. Oswal Pump's competitors include Kisloskar Brothers, Shakti Pumps, WPIL, and Roto Pumps. Oswal Pumps IPO Objectives Oswal Pumps plans to utilise the IPO proceeds for capital expenditure (Rs 89.86 crore), investment in subsidiary Oswal Solar for new units in Karnal (Rs 272.76 crore), repayment of company borrowings (Rs 280 crore), repayment of Oswal Solar's loans (Rs 31 crore), and towards general corporate purposes. Oswal Pumps IPO: More Info Ahead of the IPO, Oswal Pumps on Thursday mobilised Rs 416.2 crore from anchor investors. The initial public offering (IPO) opened on June 13 and will be closed on June 17. Its allotment will take place on June 18, while its shares are scheduled to be listed on June 20 on both BSE and NSE. The IPO is a combination of a fresh issue of shares valued at Rs 890 crore and an offer-for-sale (OFS) of 81 lakh stocks worth Rs 497.34 crore at the upper end of the price band, by promoter Vivek Gupta. This aggregates the issue size at Rs 1,387.34 crore. IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management are the book-running lead managers to the issue. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : initial public offering (IPO) IPO Location : New Delhi, India, India First Published: June 13, 2025, 12:53 IST News business » ipo Oswal Pumps IPO: Should You Apply? Check Price, GMP, Lot Size, Reviews, Subscription Status
Mint
2 days ago
- Business
- Mint
Oswal Pumps IPO Day 1 Live: Check GMP, subscription status, review. Should you apply or not?
Oswal Pumps IPO: The initial public offering (IPO) of Oswal Pumps Ltd begins today (Friday, June 13) and will close on Tuesday, June 17. On Thursday, it raised ₹ 416.2 crore from anchor investors just a day before its share sale opened to the public for subscriptions. Among the anchor investors are ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, Aditya Birla Sun Life MF, Quant MF, Societe Generale, Edelweiss Life Insurance, BNP Paribas, the Paris-based asset manager Amundi, and the financial services firm Capital Group, as per a circular posted on BSE's website. Oswal Pumps IPO price band has been set between ₹ 584 and ₹ 614 per share for its total initial public offering of ₹ 1,387 crore. Investors can place bids for a minimum of 24 equity shares and in multiples of 24 shares thereafter. The offering will be conducted via the book-building method, where a maximum of 50% of the net offer will be reserved for qualified institutional buyers on a proportionate basis, at least 15% will be allocated to non-institutional bidders, and a minimum of 35% will be set aside for retail individual bidders. Oswal Pumps started its operations in 2003 by producing low-speed monoblock pumps and has since expanded its production to include grid-connected submersible pumps and electric motors. The company manufactures solar-powered and grid-connected submersible and monoblock pumps, as well as electric motors, including induction and submersible motors, along with solar modules, and sells these products under the 'Oswal' brand. In FY24, Oswal Pumps' revenue from operations surged by 97% to ₹ 758.6 crore, up from ₹ 385 crore in the previous year, while profit climbed to ₹ 97.66 crore from ₹ 34.20 crore. Subscription for the public issue will open at 10:00 IST during Friday's deals. As per BP Equities, the company has notably decreased its debt-to-equity (D/E) ratio from 2.1x in FY22 to 0.4x in FY24, while the ratio for 9MFY25 is at 0.9x. The rise in debt was primarily attributed to a significant increase in short-term financing. Nevertheless, despite the debt increase, financial comfort remains intact, as evidenced by a robust growth in its interest coverage ratio, which improved from 4.6x to 11.2x between FY22 and 9MFY25. The valuation of the issue stands at a price-to-earnings (P/E) ratio of 21.2x at the upper price band based on FY25 earnings (annualized), making it relatively more affordable compared to its competitors. Taking all these compelling aspects into account, they suggest a "SUBSCRIBE" recommendation for this issue. SBICAP Securities noted that the firm has an order book amounting to ₹ 1,100 crore, which is approximately 0.8 times its annualized revenue for 9MFY25, along with an extra bidding pipeline of around ₹ 3,200 crore that suggests good growth potential. However, a challenge for the business is its reliance on government contracts and potential delays in cash flow. The brokerage has advised investors to SUBSCRIBE to the issue for a long-term investment perspective. Oswal Pumps IPO GMP today is +71. This indicates Oswal Pumps share price was trading at a premium of ₹ 71 in the grey market, according to Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Oswal Pumps share price is indicated at ₹ 685 apiece, which is 11.56% higher than the IPO price of ₹ 614. According to the recent seven sessions of grey market activity, the current IPO GMP is showing an upward trend and is anticipated to have a robust listing. The minimum GMP is ₹ 0.00, and the maximum GMP is ₹ 88, as noted by experts from 'Grey market premium' indicates investors' readiness to pay more than the issue price. 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.
