Shares of Oswal Pumps made a quiet stock market debut on June 20, listing at a marginal premium of just 3% over its issue price. The shares opened at ₹634 on the NSE and ₹632 on the BSE, compared to the IPO price of ₹614, valuing the company at ₹7,203.37 crore.
The listing fell short of market expectations, especially as grey market data had projected gains of 10–15% ahead of the debut.
The ₹1,387.34-crore IPO, which was open for subscription from 13–17 June, saw strong demand, being subscribed 34.42 times overall. The Qualified Institutional Buyer (QIB) portion was subscribed 88.08 times, Non-Institutional Investor (NII) category 36.70 times, and the retail quota 3.60 times, according to exchange data.
Of the IPO proceeds, ₹89.86 crore is earmarked for capital expenditure, ₹273 crore will be invested in subsidiary Oswal Solar to set up a new manufacturing unit in Haryana, ₹280 crore is allocated for debt repayment, and another ₹31 crore will go towards reducing Oswal Solar’s borrowings.
Prashanth Tapse, Research Analyst at Mehta Equities, said that despite broader market volatility, the IPO received a strong response, especially from institutional investors. He attributed this to the company’s diversified product base, reasonable valuations, and exposure to agriculture, infrastructure, and rural development sectors aligned with government priorities.
Tapse, who had anticipated listing gains of 10–15%, still recommended that allocated investors hold the stock for the long term, citing structural growth potential. He also suggested that non-allotted investors could consider accumulating the stock on dips, particularly if market volatility offers entry opportunities.
