Oswal Pumps IPO subscribed 42% on Day 1; NII, Retail investors lead - Check latest GMP

Oswal Pumps IPO subscription gains momentum on Friday.

The initial public offering (IPO) of Oswal Pumps Ltd was subscribed 42 percent on the first day of bidding on Friday, with demand primarily coming from non-institutional and retail investors.

The non-institutional investor (NII) category saw 79 percent subscription, while the retail individual investor segment was subscribed 45 percent, according to data from stock exchanges.

Earlier, the company raised Rs 416.2 crore from anchor investors on Thursday.

The IPO, which opened for public subscription on June 13, will close on June 17. The price band has been fixed at Rs 584–614 per equity share, with a lot size of 24 shares.

The offer comprises a fresh issue of equity shares aggregating up to Rs 890 crore and an offer-for-sale (OFS) of 81 lakh shares worth Rs 497.34 crore at the upper end of the price band by promoter Vivek Gupta. The total issue size stands at Rs 1,387.34 crore.

According to Gaurav Garg of Lemonn Markets, the company has reported a revenue CAGR of 45 per cent over the last two years, with return ratios of 88.73 per cent RONW and 81.85 per cent ROCE. Oswal Pumps holds a 38 per cent market share in solar pump installations under the PM-KUSUM scheme, with over 87 per cent of revenue linked to government-driven demand, he said.

He added that while working capital intensity and reliance on government orders remain near-term risks, the company’s strong order book, backward integration into solar modules, and scalable manufacturing base support its long-term prospects. The valuation post-issue appears conservative compared to listed peers, offering an attractive opportunity for medium- to long-term investors, he said.

According to Investorgain, the shares of the company are commanding an 11 percent GMP in the grey market.

The company intends to use proceeds from the fresh issue to fund capital expenditure, invest in its wholly owned subsidiary Oswal Solar, set up new manufacturing facilities in Karnal, repay debt, and for general corporate purposes.

The equity shares are proposed to be listed on the BSE and NSE, with allotment expected on June 18 and listing likely on June 20.