Oswal Pumps IPO: Slow Start with 6% Subscription, GMP Dips to 11%

Oswal Pumps IPO opens for subscription, with the mainline issue subscribed only 6% as of 11 AM on Day 1. The retail and NII portions are subscribed around 9% each, while there are no bids from QIBs. Ahead of the IPO, the company raised ₹416.20 crore from anchor investors. Analysts have recommended subscribing to the issue on a long-term basis.

The initial public offering (IPO) of Oswal Pumps, a leading manufacturer of solar-powered and grid-connected pumps, opened for subscription today, June 13, 2025. The IPO, priced between ₹584 and ₹614 per share, includes a fresh issue of 14.5 million shares and an offer for sale (OFS) of 8.1 million shares. As of 11 AM on the first day, the mainline issue was subscribed to only 6%, while the retail and non-institutional investor (NII) portions saw around 9% subscription each. Notably, there have been no bids from qualified institutional buyers (QIBs) as of the time of this report [1].

Ahead of the IPO, Oswal Pumps secured ₹416.20 crore from anchor investors, indicating strong interest from top global and domestic institutional funds. The company informed the exchanges that it allotted 67,78,533 equity shares at ₹614 per share to anchor investors on Thursday [4].

Oswal Pumps, incorporated in 2003, manufactures a range of products including solar-powered and grid-connected submersible and monoblock pumps, electric motors, and solar modules. The company reported a significant increase in revenue and profit in the financial year 2023-24, with a 97% rise in revenue and a near two-fold jump in profit after tax [1].

The funds raised through the IPO will be utilized for various purposes, including capital expenditure, investment in its wholly-owned subsidiary Oswal Solar, setting up new manufacturing units, and repaying debts of the company and its subsidiaries [2].

Analysts have recommended subscribing to the issue on a long-term basis, given the company's strong financial performance and growth prospects. However, the IPO appears to be priced aggressively, and only well-informed investors should consider bidding for the issue and staying invested for the medium to long term [3].

References:

[1] https://www.business-standard.com/markets/news/oswal-pumps-sets-ipo-price-band-at-584-614-check-key-details-here-125061000349_1.html

[2] https://www.business-standard.com/markets/ipo/oswal-pumps-ipo-price-band-rs-584-to-614-opening-june-13-125061001094_1.html

[3] https://www.financialexpress.com/market/ipo-news-oswal-pumps-ipo-launches-june-13-check-gmp-price-band-amp-5-key-things-every-investor-must-know-before-subscribing-3877227/

[4] https://m.economictimes.com/markets/ipos/fpos/oswal-pumps-raises-rs-416-crore-from-anchor-investors-ahead-of-ipo/articleshow/121807994.cms