Oswal Pumps IPO GMP Today: Grey Market Premium Falls On Day 2; Should You Subscribe?

Last Updated:June 16, 2025, 11:09 IST

Oswal Pumps IPO: Ahead of the IPO, Oswal Pumps on Thursday mobilised Rs 416.2 crore from anchor investors.

Oswal Pumps IPO Day 2: The initial public offering of Oswal Pumps Ltd opened for public subscription on Friday, June 13. As of 11:00 am on the second day of the Oswal Pump IPO, a total of 1,62,12,980 shares were offered with 1,04,12,352 shares bid for, resulting in an overall bid ratio of 0.64.

For Qualified Institutional Buyers (QIBs), a total of 45,43,116 shares were offered, while only 4,03,176 shares were bid for, reflecting 0.09 times the total meant for this category. Breakdown of QIBs shows Foreign Institutional Investors (FIIs) bid for 3,46,248 shares, while Mutual funds and others bid for 336 and 56,592 shares respectively. Domestic Financial Institutions, including Banks, Financial Institutions, and Insurance Companies, did not place any bids.

Non-Institutional Investors (NIIs) showed more interest, with 35,00,959 shares offered and 47,44,440 shares bid for, amounting to 1.36 times the total. Within this category, those bidding for more than ten lakh rupees showed significant activity, with a bid ratio of 1.42, particularly driven by individuals who bid for 31,94,928 shares. Retail Individual Investors (RIIs) were offered 81,68,905 shares and bid for 52,64,736 shares, reflecting a 0.64 times bid ratio.

The three-day IPO will close on Tuesday, June 17.

Oswal Pumps Limited, founded in July 2003, manufactures a wide range of pumps and related products for domestic, agricultural, and industrial use.

Oswal Pumps IPO Price

The price band has been fixed in the range of Rs 584-614 apiece.

Oswal Pumps IPO Lot Size

The minimum lot size is 24 shares, requiring a retail investment of Rs 14,016 (Rs 14,736 at cutoff price). For small NII, the minimum is 14 lots (336 shares) at Rs 2,06,304; and for big NII, 68 lots (1,632 shares) at Rs 10,02,048.

Oswal Pumps IPO GMP Today

According to market observers, unlisted shares of Oswal Pumps Ltd are currently trading at Rs 663 apiece in the grey market, which is a 7.62 per cent premium or GMP over the upper IPO price of Rs 614. It indicates listing gains for investors on June 20, the tentative listing date.

The shares will be listed on both BSE and NSE.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Oswal Pumps IPO: Should You Subscribe?

Most analysts have given ‘subscribe for long-term’ rating to the IPO. They said Oswal Pumps is one of India’s fastest-growing names in solar-powered solutions, and reported a CAGR of 45.1% between FY22 and FY24. The company is expected to grow at a rate of 11% in the next five years, the analysts said.

However, they also mentioned some risks, including the company’s dependent on its top-10 customers (who account for nearly 80% of revenue from operations), government funding changes or policy changes (as the significant portion of Oswal Pumps’ revenue is derived from turnkey solar pumping systems under PM-KUSUM), and the concentration of all of its manufacturing facilities at one place (Karnal, Haryana).

Giving a ‘subscribe’ rating, Aditya Birla Money in its IPO note said, “Oswal Pumps Ltd (OSPL), founded in one of India’s fastest-growing names in solar-powered solutions. The company has carved a niche as a fully integrated manufacturer of solar and grid-connected submersible pumps, monoblock pumps, high-efficiency electric motors, and solar modules.”

It said that at the upper price band, OSPL is available at a reasonable valuation of 21x at its annualised 9MFY25 EPS. “We have a SUBSCRIBE recommendation to this issue for the long-term,” it said.

Another brokerage firm BP Wealth in its note said, “Given the company’s strong brand equity in solar pumps, diversified product offerings, and integrated manufacturing capabilities, it is well-positioned to capitalise on these structural growth drivers. Its robust domestic distribution network and expanding presence in high-growth states further enhance its ability to monetise the sector’s rising demand.”

The issue is valued at a price-to-earnings (P/E) ratio of 21.2x on the upper price band based on FY25 earnings (annualised), which is relatively cheaper compared to its peers. “We recommend a “SUBSCRIBE” rating for this issue,” it added.

Other brokerages Arihant Capital, Deven Choksey, GEPL Capital, Nirmal Bang, SBI Securities, and SMIFS have given the subscribe rating to the Oswal Pumps IPO.

Oswal Pumps’ Financials

The company recorded one of the highest EBITDA margins among peers in FY24 (30.1% in 9MFY25), up from 10.7% in FY22, showcasing clear operating leverage gains. However, competition from established peers and its dependency on tenders for its revenue, remain key risk factors to consider.

Oswal Pump’s competitors include Kisloskar Brothers, Shakti Pumps, WPIL, and Roto Pumps.

Oswal Pumps IPO Objectives

Oswal Pumps plans to utilise the IPO proceeds for capital expenditure (Rs 89.86 crore), investment in subsidiary Oswal Solar for new units in Karnal (Rs 272.76 crore), repayment of company borrowings (Rs 280 crore), repayment of Oswal Solar’s loans (Rs 31 crore), and towards general corporate purposes.

Oswal Pumps IPO: More Info

Ahead of the IPO, Oswal Pumps on Thursday mobilised Rs 416.2 crore from anchor investors.

The initial public offering (IPO) opened on June 13 and will be closed on June 17. Its allotment will take place on June 18, while its shares are scheduled to be listed on June 20 on both BSE and NSE.

The IPO is a combination of a fresh issue of shares valued at Rs 890 crore and an offer-for-sale (OFS) of 81 lakh stocks worth Rs 497.34 crore at the upper end of the price band, by promoter Vivek Gupta. This aggregates the issue size at Rs 1,387.34 crore.

IIFL Securities, Axis Capital, CLSA India, JM Financial, and Nuvama Wealth Management are the book-running lead managers to the issue.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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