Oswal Pumps IPO: Gray market premium reaches 14%, subscription starts from June 13:

News Topical, Digital Desk : Oswal Pumps IPO: The IPO of solar pump manufacturer Oswal Pumps is going to open from June 13. Even before this, the grey market premium (GMP) is seeing a rise. On June 12, the GMP of the company's shares reached 14.33%, which is ₹ 88 more than the offer price. Earlier on June 11, the GMP was ₹ 67.

Oswal Pumps has fixed a price band of ₹584 to ₹614 per share for its IPO. The IPO will be open from June 13 to June 17. Investors can apply in a minimum of 24 shares and multiples thereof. The total size of the issue includes a fresh issue of ₹890 crore and an offer for sale (OFS) of 0.81 crore shares by promoter Vivek Gupta. Vivek Gupta holds a 25.17% stake in the company.

What will the money be used for?

The company will use the funds raised from the IPO to expand manufacturing capacity, invest in new production plants in Haryana, repay debt and for other corporate purposes. In the financial year 2023-24, the company's revenue stood at ₹ 758.57 crore, almost double the ₹ 385.04 crore last year. Net profit stood at ₹ 97.67 crore, three times more than the ₹ 34.20 crore last year. Oswal Pumps has completed orders for 26,270 turnkey solar pumping systems under the PM-KUSUM scheme, which have been installed in states like Haryana, Rajasthan, Uttar Pradesh and Maharashtra. The book running lead managers of this IPO are IIFL Capital, Axis Capital, CLSA India, JM Financial and Nuvama Wealth Management, while MUFG Intime India is the registrar to the issue. The allotment will be finalised on June 18 and the company will be listed on BSE and NSE on June 20.