Muted Debut! Oswal Pumps shares list at ₹634 on NSE, up 3.2% from IPO price

Oswal Pumps IPO listing: Shares of Oswal Pumps made a muted debut on the bourses on Friday, June 20, listing at ₹634 on NSE, a premium of just 3.2 percent from its issue price of ₹614. Meanwhile, on BSE it listed at ₹632, up 2.9 percent from issue price.

The IPO, valued at ₹1,387.34 crore, was open for subscription from June 13 to June 17.

Oswal Pumps's IPO ended on a strong note, with the issue subscribed 34.42 times over the three-day bidding window. Investors placed bids for 55.80 crore as against just 1,62 crore shares on offer. The retail investor segment saw 3.60 times subscription, while the non-institutional investor (NII) category witnessed 36.70 times subscription. The portion reserved for qualified institutional buyers (QIBs) was also subscribed 88.08 times.

About the IPO

The IPO comprises a fresh issue of 1.45 crore equity shares totaling ₹890 crore, along with an offer for sale (OFS) of 0.81 crore shares amounting to ₹497.34 crore. The minimum application size was 24 shares, implying a minimum investment of ₹14,736 lakh from retail investors.

The proceeds from the fresh issue were earmarked for multiple purposes, including funding specific capital expenditures, investing in its wholly owned subsidiary Oswal Solar through debt or equity, establishing new manufacturing units in Karnal, Haryana, repayment of existing debt, and meeting general corporate requirements.

IIFL Capital Services Limited, Axis Capital Limited, CLSA India Private Limited, JM Financial Limited, and Nuvama Wealth Management Limited acted as the book running lead managers for the Oswal Pumps IPO, while MUFG Intime India Private Limited (Link Intime) served as the registrar to the issue.

About the Company

Oswal Pumps Limited, established in 2003, is engaged in the manufacturing and distribution of pumps, offering a wide portfolio of products designed for domestic, agricultural, and industrial applications. Its product range includes solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires and cables, and electric panels.

As of August 31, 2024, the company had executed 26,270 turnkey solar pumping system orders directly under the PM-KUSUM Scheme across several Indian states, including Haryana, Rajasthan, Uttar Pradesh, and Maharashtra.

Oswal Pumps operated a manufacturing facility in Karnal, Haryana, which spanned a total land area of 41,076 square meters as of March 31, 2024.

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