Oswal Pumps' IPO gets subscribed 42% on day 1 of offer

New Delhi: The initial share sale of Oswal Pumps received 42 per cent subscription on the first day of bidding on Friday.

The IPO received bids for 67,83,552 shares, as against 1,62,12,980 shares on offer, as per data available with the NSE.

The Non Institutional Investors portion fetched 79 per cent subscription, while the Retail Individual Investors (RIIs) category got subscribed 45 per cent. The quota for Qualified Institutional Buyers (QIBs) received 8 per cent subscription.

Oswal Pumps on Thursday mopped up Rs 416.2 crore from anchor investors.

The initial public offering (IPO) will conclude on June 17.

The IPO is a combination of a fresh issue of shares valued at Rs 890 crore and an offer-for-sale (OFS) of 81 lakh stocks worth Rs 497.34 crore at the upper-end of the price band, by promoter Vivek Gupta. This aggregates the issue size at Rs 1,387.34 crore.

The IPO has a price range of Rs 584-614 per share.

Proceeds from the fresh issue will be used for funding certain capital expenditures of the company, investment in wholly-owned subsidiary Oswal Solar in the form of debt or equity, setting up new manufacturing units at Karnal, Haryana, payment of debt, and general corporate purposes.

Oswal Pumps commenced operations in 2003 by manufacturing low-speed monoblock pumps and over the years, it expanded operations to manufacture grid-connected submersible pumps and electric motors.

IIFL Capital Services, Axis Capital, CLSA India, JM Financial and Nuvama Wealth Management are the book-running lead managers to the issue.