Oswal Pumps delivers a mild listing pop on debut; stock lists at 3% premium

Shares of Oswal Pumps made a muted Dalal Street debut on Friday, June 20 as the diversified pump manufacturer was listed at Rs 634 on NSE, a premium of 3.26 per cent over its issue price of Rs 614. Similarly, the stock kicked off its maiden trading session with a premium of 2.93 per cent at Rs 632 on BSE.

The listing of Oswal Pumps has been below the expectations even though the grey market premium (GMP) for the company saw a correction since the closure of the issue. Last heard, the company was commanding a premium of Rs 40-42 per share in the unofficial market, while The GMP stood around Rs 60 before when the issue was close for the bidding.

Oswal Pumps, a manufacturer based in Karnal, successfully closed its initial public offering (IPO) with a notable oversubscription rate of 34.42 times. The IPO, which ran from June 13 to June 17, offered shares priced between Rs 584 and Rs 614. Oswal Pumps raised a total of Rs 1,387.84 crore, comprising a fresh share sale of Rs 890 crore and an offer-for-sale of up to 81 lakh equity shares.

The demand for Oswal Pumps' shares was robust, drawing over 12.77 lakh applications. The segment designated for qualified-institutional bidders (QIBs) saw a remarkable 88.08 times subscription. Non-institutional investors (NIIs) exhibited strong interest with a subscription rate of 36.70 times, while retail investors subscribed 3.60 times.

Established in 2003, Oswal Pumps is known for manufacturing and distributing a wide range of products, including solar pumps, submersible pumps, and electric motors, catering to various sectors such as domestic, agricultural, and industrial.

The IPO was managed by IIFL Capital Services and Axis Capital, with MUFG Intime India serving as the registrar. The positive reception from the market indicates confidence in Oswal Pumps' business model and future prospects. Brokerage firms have expressed optimism about the offering.