Oswal Pumps Lists with 3% Premium; IPO Allottees See Modest Gains
Oswal Pumps shares made a modest debut on Indian bourses on June 20, listing at a 3.26% premium over its issue price. On the National Stock Exchange (NSE), the stock opened at Rs 634 per share, slightly above its IPO price of Rs 614. The stock listed at Rs 632 on the BSE, reflecting a 2.93% gain at the open.
For retail investors who secured allotment in the public issue, the listing brought limited but positive gains. A single IPO lot consisted of 24 shares, costing Rs 14,736 at the upper price band. Based on the NSE listing price, the lot was valued at Rs 15,216, resulting in a profit of Rs 480 per lot.
Oswal Pumps’ Rs 1,387.34 crore initial public offering comprised a fresh issue of shares worth Rs 890 crore and an offer for sale of 81 lakh equity shares by promoter Vivek Gupta, aggregating Rs 497.34 crore. The issue was priced in the range of Rs 584 to Rs 614 per share.
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Investor demand for the IPO was robust, with an overall subscription of 34.42 times. The qualified institutional buyer (QIB) portion saw the strongest response, subscribed 88.08 times, while the non-institutional investor (NII) segment was booked 36.70 times. The retail portion received a more moderate 3.60 times subscription.
Proceeds from the public offering will support a range of initiatives, including funding capital expenditure plans, investment in the company’s wholly-owned subsidiary Oswal Solar, setting up new manufacturing facilities in Karnal, Haryana, repayment of debt, and meeting general corporate expenses.
Established in 2003, Oswal Pumps began operations with low-speed monoblock pumps and gradually expanded into submersible pump and electric motor manufacturing. The company has since developed a significant presence in both grid-connected pumping systems and solar-powered solutions.
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Financially, Oswal Pumps has posted strong performance. For the nine months ending December 2024, it reported operating revenue of Rs 1,067.34 crore and a net profit of Rs 216.71 crore. In FY24, the company clocked revenue of Rs 761.23 crore and a PAT of Rs 97.67 crore.
The IPO was managed by a consortium of top investment banks, including IIFL Capital Services, CLSA India, JM Financial, Axis Capital, and Nuvama Wealth Management, acting as book-running lead managers.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
