Oswal Pumps IPO Day 2 Live: Issue subscribed 1.61x so far. Check GMP, key dates, issue details. Should you apply or not?

The initial public offering (IPO) for Oswal Pumps Ltd commenced on Friday, June 13, and will conclude on Tuesday, June 17. On Thursday, the company secured ₹416.2 crore from anchor investors just a day prior to opening the share sale for public subscriptions.

The response to the Oswal Pumps IPO was moderate and consistent, with the retail investor segment being half subscribed, while Non-Institutional Investors (NIIs) saw a considerable response.

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 Parisian asset management firm Amundi, and the financial services company Capital Group, according to a circular posted on the BSE's website.

Oswal Pumps IPO price band has been established between ₹584 and ₹614 per share for a total initial public offering amounting to ₹1,387 crore. Investors can submit bids for a minimum of 24 equity shares and in multiples of 24 shares thereafter. The basis of allotment of shares for the Oswal Pumps IPO is expected to be determined on Wednesday, June 18, with refunds starting on Thursday, June 19, and shares being credited to the demat accounts of allottees on the same day following the refunds. The shares of Oswal Pumps are anticipated to be listed on BSE and NSE on Friday, June 20.

The company specializes in manufacturing solar-powered and grid-connected submersible and monoblock pumps, as well as electric motors, including induction and submersible types, and solar modules, all marketed under the ‘Oswal’ brand. With over 22 years in the field, the company has gained extensive expertise in engineering, product design, manufacturing, and testing.

Oswal Pumps IPO Day 2 Live: Companies Competitive Strength

Oswal Pumps IPO Day 2 Live: Subscription Status

Oswal Pumps IPO subscription status is 1.61 times on day 2, so far. The retail portion was subscribed 1.12 times, and NII portion was booked 4.50 times. Qualified Institutional Buyers (QIBs) portion received 27% bids.

The company has received bids for 2,61,59,928 shares against 1,62,12,980 shares on offer, at 17:00 IST, according to data on BSE.

Oswal Pumps IPO Day 2 Live: Check out investment rationale of BP Equities

1. Deepening integration to drive margin expansion and manufacturing efficiency.
2. Integrated product diversification strategy strengthened by expanding market reach.

Oswal Pumps IPO Day 2 Live: Check out Mehta Equities Views 

"On valuation parse on upper price band of ₹614/-, the issue is asking a Market cap of ₹6,998 crore. Based on annualised FY 2025 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. 

As one of the largest suppliers of solar-powered agricultural pumps under the PM-KUSUM scheme, we believe the company is well positioned to benefit from policy tailwinds and the accelerating shift toward sustainable irrigation solutions. Hence, we recommend investors to “SUBSCRIBE” the Oswal Pumps IPO for long-term perspective," said Rajan Shinde, Research Analyst, Mehta Equities Ltd.

Oswal Pumps IPO Day 2 Live: Subscription Status 

Oswal Pumps IPO subscription status is 74% on day 2, so far. The retail portion was subscribed 73%, and NII portion was booked 1.63 times. Qualified Institutional Buyers (QIBs) portion received 9% bids.

The company has received bids for 1,20,60,432 shares against 1,62,12,980 shares on offer, at 11:57 IST, according to data on BSE.

Oswal Pumps IPO Day 2 Live: Objects and Details of the Issue

1. Funding capital expenditure amounting to 90 crores.

2. Investment in its wholly owned Subsidiary, for funding the setting up of new manufacturing units at Karnal, Haryana amounting to 273 crores.

3. Repayment of loans of the company and its Subsidiary totaling to 311 crores.

Oswal Pumps IPO Day 2 Live: Manufacturing Facilities

Company have two manufacturing facilities, both of which are located at Karnal in Haryana Both of their manufacturing facilities are operated 24 hours for six days a week (closed on Sunday), except on national holidays.

Oswal Pumps IPO Day 2 Live: Key details

Oswal Pumps IPO Day 2 Live: Subscription Status

Oswal Pumps IPO subscription status is 53% on day 2, so far. The retail portion was subscribed 55%, and NII portion was booked 1.07 times. Qualified Institutional Buyers (QIBs) portion received 9% bids.

The company has received bids for 86,49,744 shares against 1,62,12,980 shares on offer, at 10:09 IST, according to data on BSE.

Oswal Pumps IPO Day 2 Live: Investment Rationale

1. PM-KUSUM: A Catalyst for OPL’s Solar-Led Growth

2. End-to-End Manufacturing: OPL’s Competitive Edge through Vertical Integration

3. OPL’s Foray into Industrial and High-Efficiency Pumping Solutions to act as cushion for any risks related to government projects

4. Improving Financials

Oswal Pumps IPO Day 2 Live: Subscription Status

Oswal Pumps IPO subscription status is 42% as of close on day 1. The retail portion was subscribed 45%, and NII portion was booked 79%. Qualified Institutional Buyers (QIBs) portion received 8% bids.

The company has received bids for 67,83,552 shares against 1,62,12,980 shares on offer, according to data on BSE.

Oswal Pumps IPO Day 2 Live: Review

According to Anand Rathi Research, the firm is among the leading suppliers of solar-powered agricultural pumps under the PM Kusum Scheme, well-positioned to take advantage of favorable industry trends due to its vertically integrated manufacturing capabilities and strong presence in key agricultural states in India, including Haryana, as well as its expanding footprint in other regions and extensive distribution network serving a diverse customer base.

At the upper end of the price range, the company is being valued at a P/E ratio of 24.2x, an EV/EBITDA ratio of 22.8x, and a market capitalization of ₹69,982 million following the issuance of equity shares. The brokerage believes that the IPO is appropriately priced and recommends a "Subscribe-Long term" rating for the IPO.

Nirmal Bang reported that the company has achieved impressive Revenue/EBITDA/PAT CAGR of 44%/103%/134% between FY22-9MFY25. It currently holds an order book of ₹1,100 crore and an additional bidding pipeline of approximately ₹3,200 crore, suggesting solid growth prospects in the upcoming years.

At the upper end of the price range of ₹614, based on post-issue capital, the IPO is priced at 9MFY25 annualized P/E and an EV/EBITDA ratio of 24.2x and 16.4x respectively, which is lower than its nearest competitor Shakti Pumps. The brokerage has advised investors to ‘Subscribe’ to the offering.

Oswal Pumps IPO Day 2 Live: IPO details

The IPO comprises a fresh issuance of equity shares valued at ₹890 crore and a divestment of up to 8.1 million shares by one of the company's promoters, Vivek Gupta, who presently owns a 25.17 percent share in the organization.

Out of the funds raised, ₹89.86 crore will be allocated for capital expenditures, ₹273 crore will support the subsidiary Oswal Solar in constructing a new manufacturing facility in Haryana, ₹280 crore will be assigned to debt repayments, and ₹31 crore will be utilized to clear debts at Oswal Solar.

The primary managers overseeing this issue include IIFL Capital, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management.

Oswal Pumps IPO Day 2 Live: Oswal Pumps IPO GMP today

Oswal Pumps IPO GMP today is +45. This indicates Oswal Pumps share price was trading at a premium of ₹45 in the grey market, according to investorgain.com.

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 ₹659 apiece, which is 7.33% higher than the IPO price of ₹614.

According to the recent ten 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 investorgain.com.

'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.