Today marks the final day for investors to subscribe to the Initial Public Offering (IPO) of Oswal Pumps Ltd, which opened on June 13, 2025. The IPO has garnered significant attention, particularly from retail and non-institutional investors. The issue comprises a fresh issue of shares worth ₹890 crore and an offer for sale (OFS) of 8.1 million shares by promoter Vivek Gupta. The price band for the IPO has been fixed at ₹584 to ₹614 per share, with a face value of ₹1.

Subscription Status

As of the end of Day 2, the Oswal Pumps IPO was subscribed 1.61 times. The retail portion was subscribed 1.12 times, while the Non-Institutional Investors (NII) portion was booked 4.50 times. The Qualified Institutional Buyers (QIBs) portion saw a subscription of 27%. By the end of Day 2, the company had received bids for 2,61,59,928 shares against the 1,62,12,980 shares on offer. The IPO saw full subscription on Monday, driven by strong interest from retail and non-institutional investors. By afternoon of June 16, the IPO had received bids for 1.75 crore shares against 1.62 crore shares on offer. Non-institutional investors subscribed 2.62 times their allocated quota, followed by retail investors at 89%, while Qualified institutional buyers (QIBs) had bid for 24% of their portion.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) is an unofficial indicator of the expected listing price of an IPO. According to investorgain.com, the GMP for Oswal Pumps IPO is ₹56 today. This suggests that the shares are trading at a premium of ₹56 in the grey market. Considering the upper end of the IPO price band (₹614) and the current GMP, the estimated listing price of Oswal Pumps shares is ₹670 apiece, which is 9.12% higher than the IPO price. It's important to note that the GMP is an unauthenticated market-related news and has no discernible basis and investors should conduct their own research before making any investment decisions.

Utilization of IPO Proceeds

Oswal Pumps plans to utilize the net proceeds from the fresh issue for several key purposes. ₹89.86 crore will be allocated for funding capital expenditure, ₹273 crore will be invested in the subsidiary Oswal Solar for constructing a new manufacturing facility in Haryana, and ₹280 crore will be assigned to debt repayments. Additionally, ₹31 crore will be used to clear debts at Oswal Solar.

Anchor Investors

Prior to the IPO opening, Oswal Pumps raised ₹416.2 crore from anchor investors on June 12. The company allotted 67.78 lakh shares at ₹614 per share to marquee institutions. Some of the prominent anchor investors include ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, Aditya Birla Sun Life MF, Quant MF, Societe Generale, Edelweiss Life Insurance, BNP Paribas, Amundi, and Capital Group.

Company Overview

Founded in 2000, Oswal Pumps specializes in manufacturing solar-powered and grid-connected submersible and monoblock pumps, electric motors, and solar modules. The company has experienced rapid growth, supported by government initiatives like the PM Kusum Yojana. As of December 2024, Oswal Pumps accounted for approximately 38% of India's installed solar pumps.

IPO Details and Tentative Schedule

The IPO is a book-building issue with the price band set between ₹584 and ₹614 per share. Investors can bid for a minimum of 24 equity shares and in multiples of 24 shares thereafter. The IPO opened on June 13, 2025, and closes today, June 17, 2025. The basis of allotment is expected to be finalized on Wednesday, June 18, 2025. Refunds will commence on Thursday, June 19, 2025, and shares will be credited to the demat accounts of allottees on the same day. The shares of Oswal Pumps are anticipated to be listed on both the BSE and NSE on Friday, June 20, 2025.

Should You Subscribe?

The decision to subscribe to an IPO depends on various factors, including the company's financial performance, growth potential, market conditions, and your own risk appetite. Oswal Pumps has demonstrated strong financials and growth in the solar pump manufacturing sector. The positive GMP also indicates potential listing gains. However, investors should carefully consider all available information and consult with financial advisors before making any investment decisions. The IPO closes today, so potential investors need to make a well-informed decision promptly.