Mumbai: Today, June 17, is the last day to apply for the Oswal Pumps Limited IPO. On the first day, the IPO was subscribed 42 per cent overall — retail investors subscribed 45 per cent, non-institutional investors (NIIs) 79 per cent, and qualified institutional buyers (QIBs) only 8 per cent.

Subscription Increased on Day 2

On the second day (June 16), the IPO received more interest and was subscribed 1.65 times in total.

Retail: 1.16 times

NII: 4.65 times

QIB: 0.27 times

The IPO is reserved as follows:

50 per cent for QIBs

35 per cent for retail investors

15 per cent for NIIs

GMP Moving Up in Grey Market

Market experts say the Grey Market Premium (GMP) for Oswal Pumps IPO is Rs 56. This is 9.1 per cent higher than the top price of the IPO. The GMP has been rising for the past two days. The highest GMP seen so far is Rs 88.

IPO Size and Price Band

The IPO plans to raise a total of Rs 1,387.34 crore, which includes:

Fresh issue: Rs 890 crore

Offer for sale (OFS): Rs 497.34 crore

Price band: Rs 584 to Rs 614 per share.

Listing Date and Allotment Schedule

IPO closes: June 17

Allotment date: June 18 (likely)

Shares in demat: June 19

Listing on NSE SME: June 20 (expected)

Investment Advice

SBI Securities recommends subscribing for the long term. Strengths include:

Strong order book worth Rs 1,100 crore

Leading position in the market

Good profit margins

Risks include:

Dependence on government schemes

High receivable cycle (140–150 days)

About the Company

Founded in 2000, Oswal Pumps makes:

Solar and electric pumps

Electric motors

Solar modules

The company plays a key role in the PM-KUSUM scheme and supplies 38 per cent of solar pumps installed in India.

It has a vertically integrated plant in Karnal, Haryana, 925 distributors, and 248 company-owned retail stores (Oswal Shopee).

Financials and Valuation

FY22 Revenue: Rs 360 crore → FY24 Revenue: Rs 759 crore

FY22 Profit: Rs 17 crore → FY24 Profit: Rs 98 crore

First 9 months of FY24: Rs 1,066 crore revenue, Rs 217 crore profit

Valuation (at upper price band Rs 614/share):

P/E ratio: 24.2x

EV/EBITDA: 15.1x

RoE: 72.6 per cent

RoCE: 56 per cent

These numbers are better than rivals like Shakti Pumps, KSB, and Kirloskar Brothers.