Oswal Pumps IPO Subscribed 1.61 Times On Day 2 — Check GMP

The initial public offering of Oswal Pumps Ltd. was subscribed 1.61 times on its second day of bidding on Monday, led by demand from non-institutional investors. While the retail portion was also overbooked, the institutional investor segment remained sluggish.

The grey market premium of the Oswal Pumps IPO was Rs 60 as of 4:00 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 674 apiece, indicating a 9.77% premium to the upper end of the price band.

Oswal Pumps IPO is a bookbuilding of Rs 1,387.34 crore. The issue is a combination of fresh issue of 1.45 crore shares aggregating to Rs 890.00 crores and offer for sale of 0.81 crore shares aggregating to Rs 497.34 crore.

The company intends to invest the net proceeds in its wholly-owned subsidiary—Oswal Solar—for funding its new manufacturing unit at Karnal, Haryana.

It will also deploy capital for the repayment of its outstanding borrowings availed by the company and for other corporate purposes.

• Issue opens: June 13.

• Issue closes: June 17.

• Issue price: Rs 584–614.

• Offer for sale: Rs 497.34 crore.

• Fresh issue: Rs 890 crore.

• Total issue size: Rs 1,387.34 crore.

• Lot size: Minimum 24 shares, and then in multiples thereof.

Oswal Pumps manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors. It also produces solar modules under the ‘Oswal’ brand. In agriculture, they aid irrigation for fields, while in residential settings, they help maintain gardens and fountains, extract and supply water to overhead tanks, and assist with household and small establishment cleaning.

The IPO has been subscribed 1.61 times as of 5:00 p.m. on Monday.

• Qualified institutional buyers: 0.27 times or 27%.

• Non-institutional investors: 4.50 times.

• Retail investors: 1.12 times

The grey market premium of the Oswal Pumps IPO was Rs 60 as of 4:00 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 674 apiece, indicating a 9.77% premium to the upper end of the price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.