Oswal Pumps IPO Day 3 Live: Issue booked 34.42x. Check GMP, key dates, issue details. Should you apply or not?
Oswal Pumps IPO, running until June 17, has garnered strong interest, with 1.61 times subscription by day two. The firm raised ₹416.2 crore from anchor investors and plans to utilise funds for expansion and debt repayments, with listing expected on June 20.
The initial public offering (IPO) for Oswal Pumps Ltd started on Friday, June 13, and will end today, June 17. The interest in the Oswal Pumps IPO has been quite strong on the second day of bidding on Monday, where the issue was completely subscribed with Non-Institutional Investors (NIIs) and retail investors taking the lead. On Thursday, the company raised ₹416.2 crore from anchor investors just a day before opening the share sale to public 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 Parisian asset management firm Amundi, and the financial services company Capital Group, as stated in a circular published 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 finalised 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 listing date is scheduled on BSE and NSE on Friday, June 20.
The firm focuses on producing submersible and monoblock pumps powered by solar energy and connected to the grid, in addition to electric motors, comprising both induction and submersible types, along with solar panels, all sold under the 'Oswal' brand. With more than 22 years of experience in the industry, the company has developed significant knowledge in engineering, product design, manufacturing, and testing.
Oswal Pumps IPO Day 3 Live: Subscription Status
Oswal Pumps IPO subscription status is 34.42 times on day 3. The retail portion was subscribed 3.60 times, and NII portion was booked 36.70 times. Qualified Institutional Buyers (QIBs) portion received 88.08 times bids.
The company has received bids for 55,80,42,696 shares against 1,62,12,980 shares on offer, according to data on BSE.
Oswal Pumps IPO Day 3 Live: Check out Arihant Capital Markets views
“Continued policy support for renewable energy and pump replacement demand provides a favourable long-term industry outlook, positioning the company for steady growth. At the upper price band of ₹614, the issue has a P/E ratio of 24.22x, based on annualised 9MFY25 EPS of ₹25.4. We assign a “Subscribe for Long Term ” rating for this issue,” the brokerage said.
Oswal Pumps IPO Day 3 Live: Check out HENSEX Securities views on the issue
The brokerage advises long term investors to subscribe, backed by sector growth, integration benefits, and financial improvement.
“On 9MFY25 annualised earnings, the issue is valued at a P/E of 21.2x, making it reasonably priced compared to industry peers. The company posted impressive profitability metrics in FY24: ROE and ROCE were 54.5% and 54.9%, respectively. ROAE reached 75.6% for the same period,” said the brokerage.
Oswal Pumps IPO Day 3 Live: Indian pumps market scenario
India holds ~5.0% share of the global pumps market, presenting a significant opportunity for growth. The demand for efficient irrigation solutions in agriculture is a key driver for expansion, which is expected to be aided by government initiatives, rising adoption of solar pumps, and an increasing need for reliable water supply to boost crop yields.
Oswal Pumps IPO Day 3 Live: Subscription Status
Oswal Pumps IPO subscription status is 5.79 times on day 3, so far. The retail portion was subscribed 2.01 times, and NII portion was booked 16.80 times. Qualified Institutional Buyers (QIBs) portion received 4.10 times bids.
The company has received bids for 9,38,73,600 shares against 1,62,12,980 shares on offer, at 12:45 IST, according to data on BSE.
Oswal Pumps IPO Day 3 Live: Key Risks
- The company benefits from the PM Kusum Scheme, any reduction in the funding provided or inability to win bids may adversely impact business.
- The business is dependent on the performance of the agricultural sector, any adverse changes in the conditions affecting the agricultural sector may adversely impact business.
Oswal Pumps IPO Day 3 Live: Manufacturing Facilities
The Company operates through its two manufacturing facilities located at Karnal, Haryana; one for pumps and motors, and the other for solar modules.
Oswal Pumps IPO Day 3 Live: Subscription Status
Oswal Pumps IPO subscription status is 1.99 times on day 3, so far. The retail portion was subscribed 1.24 times, and NII portion was booked 5.97 times. Qualified Institutional Buyers (QIBs) portion received 28% bids.
The company has received bids for 3,23,03,640 shares against 1,62,12,980 shares on offer, at 10:09 IST, according to data on BSE.
Oswal Pumps IPO Day 3 Live: Company Strengths
• The company is one of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme and is well positioned to capitalise on strong industry tailwinds.
• Vertically integrated manufacturing competencies.
• Strong engineering and design capabilities.
• Comprehensive product portfolio in multiple product specifications.
• Strong presence in major agricultural states in India including Haryana and growing presence in other states.
• Extensive distribution network catering to a diversified customer base.
• Experienced Promoter and senior management team.
Oswal Pumps IPO Day 3 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 3 Live: Review
As per Master Capital Services, Oswal Pumps Limited stands out as one of the top and rapidly expanding manufacturers of solar pumps in India, focusing on enhancing operational integration to improve profit margins by (i) bringing certain processes and production of specific pump components in-house; (ii) automating particular manufacturing processes of pumps; and (iii) bolstering technological advancements and upgrading the automation and IT interface of products through targeted acquisitions.
The company also aims to boost its production capacity for solar modules and enhance its backward integration capabilities for those modules. Investors interested in long-term opportunities might consider participating in the IPO.
As per KR Choksey Securities, the IPO is appealingly valued at 17.1x FY25 EV/EBITDA (based on 9MFY25 annualised figures), indicating robust financial performance relative to competitors. The brokerage anticipates that the Company will thrive due to the demand in the renewable sector, its strong execution capabilities, and swift capacity expansions. The brokerage has issued a "SUBSCRIBE" rating for the initial offering.
Oswal Pumps IPO Day 3 Live: IPO details
The initial public offering includes a new issuance of equity shares worth ₹890 crore and a sale of up to 8.1 million shares by one of the company's promoters, Vivek Gupta, who currently holds a 25.17 percent stake in the company.
From the raised capital, ₹89.86 crore will be designated for capital expenditures, ₹273 crore will assist the subsidiary Oswal Solar in establishing a new manufacturing facility in Haryana, ₹280 crore will be used for debt repayments, and ₹31 crore will go toward settling debts at Oswal Solar.
The key underwriters managing this offering are IIFL Capital, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management.
Oswal Pumps IPO Day 3 Live: Oswal Pumps IPO GMP today
Oswal Pumps IPO GMP today is +56. This indicates Oswal Pumps share price was trading at a premium of ₹56 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 ₹670 apiece, which is 9.12% higher than the IPO price of ₹614.
In light of the grey market activities over the last 11 sessions, the IPO GMP is showing an upward trend today and is anticipated to have a robust listing. According to experts at investorgain.com, the lowest GMP is ₹0.00, while the highest reaches ₹88.00.
'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.