Mumbai: The IPO (Initial Public Offering) of Oswal Pumps Ltd opened for public on June 13 and will close on June 17. On Day 1, only 10 percent of the issue was subscribed by 12:49 pm. Retail buyers subscribed 10 percent, while institutional buyers showed lower interest.
Price Band and Lot Size
The price band for the IPO is set at Rs 584 to Rs 614 per share. The minimum lot size for retail investors is 24 shares, costing about Rs 14,016 to Rs 14,736. For small and big investors (NIIs), larger lots are required.
Grey Market Premium (GMP) Hints at Gains
In the grey market, Oswal Pumps’ shares are trading at Rs 679, which is Rs 65 more than the upper price band. This suggests a possible 10.6 percent profit on listing, expected on June 20.
What the Company Does
Oswal Pumps, founded in July 2023, makes pumps and related products for homes, farms, and factories. It is also known for solar-powered pump solutions, which are used in government projects like PM-KUSUM.
Financials and Growth
The company has grown well, with a CAGR of 45.1 percent from FY22 to FY24. It has strong EBITDA margins (30.1 percent in 9MFY25), which means good profits. However, 80 percent of its sales come from just 10 clients, which is a risk.
Valuation and Peer Comparison
The company is valued at a P/E ratio of 21.2x, which is lower than many rivals like Kirloskar Brothers, Shakti Pumps, and WPIL. This makes Oswal a reasonably priced option.
Use of IPO Funds
Oswal plans to use the Rs 1,387.34 crore IPO money for:
New factories in Karnal (Rs 272.76 crore)
Buying new equipment (Rs 89.86 crore)
Paying off company and group loans (over Rs 300 crore)
Other corporate needs
Expert Opinions: Subscribe for Long-Term
Analysts from Aditya Birla Money, BP Wealth, SBI Securities, and others suggest a ‘subscribe’ rating for long-term investors. They say the company is well-positioned to grow due to its solar focus, diverse products, and strong domestic network.
Anchor Investment and Listing Date
Before the IPO opened, Oswal raised Rs 416.2 crore from anchor investors. The allotment will happen on June 18, and shares will list on June 20 on BSE and NSE.
