Oswal Pumps IPO Day 1 Live: Issue subscribed 42% so far. Check GMP, issue details. Should you apply or not?

Oswal Pumps IPO: A Deep Dive into the ₹1,387 Crore Offering

Oswal Pumps Ltd.'s initial public offering (IPO) opened on June 13th and closes on June 17th, aiming to raise ₹1,387 crore. The company successfully garnered ₹416.2 crore from anchor investors a day prior to the public launch.

Key Investors & Financials

High-profile investors, including ICICI Prudential MF, Kotak Mahindra MF, and several international firms like Societe Generale and Amundi, participated in the anchor investor round. This strong backing signals confidence in Oswal Pumps' future.

Financial Highlights:

• FY24 Revenue: ₹758.6 crore (97% increase year-on-year)
• FY24 Profit: ₹97.66 crore (a significant jump from ₹34.20 crore)

IPO Details & Allocation

The IPO price band is set between ₹584 and ₹614 per share. Investors can bid for a minimum of 24 shares. Allocation is as follows:

• Qualified Institutional Buyers (QIBs): Maximum 50%
• Non-Institutional Bidders (NII): At least 15%
• Retail Individual Bidders: Minimum 35%

The offering includes a fresh issue of equity shares worth ₹890 crore and an offer for sale of up to 8.1 million shares by promoter Vivek Gupta.

Promoters & Ownership

The promoters—Vivek Gupta, Amulya Gupta, Shivam Gupta, Shorya Trading Company Private Limited, Ess Aar Corporate Services Private Limited, and Singh Engcon Private Limited—hold a substantial 97.66% stake in the company.

Day 1 Subscription & Analyst Views

Initial Subscription Status (Day 1): While initial reports showed varying subscription levels (from 3% to 42%), the later numbers indicate strong retail and NII participation. QIB participation was initially low.

Analyst Opinions:

• Canara Bank Securities: Expresses concern over valuation (63x PE), revenue concentration (high dependence on PM KUSUM scheme), and receivable cycles, giving it a "Neutral" rating.
• BP Equities: Highlights improved debt-to-equity ratio and strong interest coverage ratio, recommending a "Subscribe".
• SBICAP Securities: Points to a large order book and growth potential, suggesting a "Subscribe" for long-term investors.

Peer Comparison & Grey Market Premium (GMP)

Peer Comparison: Competitors like Kirloskar Brothers, Shakti Pumps, and WPIL have varying P/E ratios, providing a benchmark for valuation.

Grey Market Premium (GMP): A GMP of ₹71 suggests a potential listing price of around ₹685, significantly higher than the upper IPO price band.

Important Dates

IPO Open: June 13th, 2024
IPO Close: June 17th, 2024

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Always conduct thorough research and consult with a financial advisor before making any investment decisions.