Oswal Pumps IPO Subscribed 42% On Day One — Check GMP
The company intends to invest the net proceeds in its wholly-owned subsidiary—Oswal Solar—for funding its new manufacturing unit at Karnal, Haryana.
The initial public offering of Oswal Pumps Ltd. was subscribed 42% on its first day of bidding on Friday.
The grey market premium of the IPO was Rs 65 as of 6:00 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 614 apiece, indicating a 10.56% premium to the upper end of the price band.
The IPO will consist of fresh equity shares worth Rs 1,000 crore and an offer for sale component worth Rs 497.34 crore. The price band for the IPO has been set in the range of Rs 584 to Rs 614 per share.
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.
Oswal Pumps IPO Details
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.
Business
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.
Oswal Pumps IPO: Subscription Status Day One
The IPO has been subscribed 0.42 times or 42% as of 5:00 p.m. on Friday.
Qualified institutional buyers: 0.08 times or 8%.
Non-institutional investors: 0.79 times, or 79%.
Retail investors: 0.45 times, or 45%.
Oswal Pumps IPO GMP
The grey market premium of the IPO was Rs 65 as of 6:00 p.m., according to InvestorGain. This implies shares of the company will likely list at Rs 614 apiece, indicating a 10.56% 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.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
