Oswal Pumps IPO Day 3: GMP Jumps 10% Ahead Of Listing This Week; Check Details

The initial public offering (IPO) of Oswal Pumps Ltd. continued to see strong demand across categories on the third and last day of bidding on Tuesday, June 17.

The mainboard issue, which opened for bidding on June 13, has been booked nearly three times so far.

Meanwhile, the latest grey market premium for Oswal Pumps IPO indicates a decent listing gain for investors.

According to InvestorGain, the grey market premium for the Oswal Pumps IPO stood at Rs 65 per share as of 12:55 p.m. on June 17. The GMP indicates a listing price of Rs 679 per share at a premium of 10.59% apiece, compared to the upper end of the price band.

The IPO saw its highest GMP of Rs 88 apiece on June 11. From June 12 to June 14, the GMP fell from Rs 71 to Rs 43 apiece. Subsequently, it has been on a strong upward trend, rising from Rs 45 to Rs 60. 

Note: GMP does not represent official data and is based on speculation.

Oswal Pumps IPO is a book-building issue worth Rs 1,387.34 crore, comprising a fresh issue of 1.45 crore shares, aggregating to Rs 890 crore and an offer-for-sale (OFS) of 81 lakh shares, amounting to Rs 497.34 crore.

The price band for the IPO has been set between Rs 584 to Rs 614 per share.

On the last day of bidding, the IPO was booked 2.95 times till 11:10 a.m., as per the NSE data. The retail portion was booked 1.55 times, while Non-Institutional Investors (NIIs) subscribed their category 9.63 times.  

Allotment of shares is expected to be finalised on June 18. Successful bidders are slated to receive shares of Oswal Pumps in their demat accounts on June 19. Refunds will also be initiated to non-allottees on the same day.

Shares of Oswal Pumps are tentatively scheduled to be listed on NSE and BSE on June 20.

Retail investors can invest in the IPO by bidding for a single lot size of 24 shares, requiring an investment of Rs 14,736. Small Non-Institutional Investors (sNII) need to bid for 14 lots comprising a total of 336 shares, amounting to an investment of Rs 2,06,304. Big NIIs (bNII) need to bid for a minimum of 68 lots or 1,632 shares, amounting to an investment of Rs 10,02,048.

IIFL Capital Services Ltd., Axis Capital Ltd., CLSA India Pvt., JM Financial Ltd. and Nuvama Wealth Management Ltd. are the book-running lead managers of the Oswal Pumps IPO. MUFG Intime India Pvt. is the registrar for the issue.

The company is known for manufacturing and distributing pumps. Its products are used in agriculture and industrial applications such as solar pumps. The company will use proceeds from the IPO to fund capital expenditure, repay borrowings and for general corporate purposes. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.