Priyanka Tiwari
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Suspense crime, Digital Desk : The initial public offering (IPO) for Oswal Pumps is generating significant buzz on its third and final day of bidding, with investors showing strong appetite for the new issue. The offering has been oversubscribed, signaling robust demand, particularly from retail investors.
As of the final day, the IPO has been subscribed 1.61 times its total size. The most enthusiastic response has come from the retail investor category, which has been oversubscribed by an impressive 2.72 times. The portion for Non-Institutional Investors (NIIs) is also steadily filling up.
Adding to the positive sentiment is the strong performance in the grey market. The Grey Market Premium (GMP) for Oswal Pumps currently stands at +₹40 per share. The GMP is an unofficial indicator of how the stock might perform on its listing day. With the upper price band of the IPO set at ₹267, a GMP of ₹40 suggests a potential listing price of around ₹307, representing a healthy premium of nearly 15% for investors.
Key IPO Details at a Glance:
Price Band: ₹253 to ₹267 per share.
Lot Size: 56 shares, requiring a minimum investment of ₹14,952.
Issue Size: The company aims to raise ₹77.72 crore.
Use of Funds: The proceeds from this fresh issue will be used for capital expenditure to purchase new machinery and to meet working capital requirements.
Market analysts have offered a largely positive outlook on the IPO. Brokerages have pointed to the company's strong brand presence in the agricultural and domestic water pump sectors, its diverse product portfolio, and a solid financial track record. Many have recommended that investors "subscribe" to the issue, citing its fair valuation and good long-term growth prospects.
With the subscription window closing today, all eyes will now turn to the share allotment on June 18, followed by the company's stock market debut, which is scheduled for June 20 on both the BSE and NSE.
