Oswal Pumps IPO Day 2 Update: Subscription Status, GMP Volatility, and What’s Next : Are you considering investing in the Oswal Pumps IPO but feeling overwhelmed by the flurry of subscription numbers, grey market premium (GMP) fluctuations, and uncertainties about what lies ahead? You’re not alone. The Oswal Pumps IPO Day 2 Update brings critical insights for investors eager to make informed decisions. With the IPO subscription window open from June 13 to June 17, 2025, and listing set for June 20, 2025, understanding the subscription status, GMP volatility, and what’s next is vital. This article dives deep into the latest developments, offering a clear, actionable guide to navigating this high-growth opportunity in India’s solar pump sector. Whether you’re a retail investor or a seasoned player, this comprehensive update will empower you to assess the IPO’s potential.

What Is the Oswal Pumps IPO?

Overview of Oswal Pumps

Oswal Pumps Ltd., a leading manufacturer of solar-powered and grid-connected pumps, launched its initial public offering (IPO) on June 13, 2025. The company, based in Karnal, Haryana, specializes in submersible and monoblock pumps, electric motors, and solar modules under the ‘Oswal’ brand. With a robust revenue growth of 45.07% CAGR from FY22 to FY24 and a strong presence in the PM-KUSUM scheme, Oswal Pumps is a key player in India’s renewable energy-driven agricultural sector. The IPO aims to raise ₹1,387.34 crore through a combination of a fresh issue of ₹890 crore and an offer-for-sale (OFS) of 81 lakh shares worth ₹497.34 crore.

Key IPO Details

• Issue Dates: June 13–June 17, 2025
• Price Band: ₹584–₹614 per share
• Lot Size: Minimum 24 shares (₹14,736 at the upper price band)
• Allotment Date: June 18, 2025
• Listing Date: June 20, 2025 (BSE and NSE)
• Book-Running Lead Managers: IIFL Capital Services, Axis Capital, CLSA India, JM Financial, Nuvama Wealth Management
• Registrar: MUFG Intime India (formerly Link Intime)

The proceeds will fund capital expenditure, debt repayment, and investments in the company’s subsidiary, Oswal Solar, for a new manufacturing unit in Haryana.

Oswal Pumps IPO Day 2 Subscription Status

Subscription Overview

As of 5:00 PM IST on June 16, 2025, the Oswal Pumps IPO was subscribed 1.65 times, receiving bids for 26,167,632 shares against the 15,816,581 shares offered. This marks a significant improvement from Day 1, which saw a tepid subscription of just 0.42 times (6,783,552 shares applied for). The surge on Day 2 reflects growing investor interest, particularly among non-institutional investors (NIIs) and retail individual investors (RIIs).

Category-Wise Subscription Breakdown

Here’s how the subscription status looked on Day 2:

• NIIs Lead the Charge: The NII segment showed robust demand, with a subscription ratio of 4.65x, driven by high-net-worth individuals betting on the company’s growth in the solar pump sector.
• Retail Investors Gain Momentum: The retail portion improved from 0.45x on Day 1 to 1.16x on Day 2, indicating growing confidence among smaller investors.
• QIBs Lag Behind: The QIB segment remained sluggish at 0.27x, suggesting institutional investors are adopting a wait-and-see approach, possibly due to market volatility or valuation concerns.

Why the Subscription Surge?

The jump in subscription on Day 2 can be attributed to several factors:

• Positive Analyst Recommendations: Brokerages like Nirmal Bang and SBI Securities have recommended subscribing for long-term gains, citing Oswal’s strong fundamentals and leadership in solar pumps.
• Anchor Investor Confidence: The company raised ₹416.2 crore from anchor investors, including ICICI Prudential, Kotak Mahindra, and Aditya Birla Sun Life, boosting market sentiment.
• Sector Tailwinds: Growing demand for solar-powered agricultural pumps under government initiatives like PM-KUSUM has positioned Oswal Pumps favorably.

GMP Volatility: What’s Happening in the Grey Market?

Understanding Grey Market Premium (GMP)

The grey market premium (GMP) reflects the price at which IPO shares trade in the unofficial market before listing. It’s a key indicator of investor sentiment and potential listing gains. However, GMP is speculative and subject to volatility, influenced by market conditions, subscription trends, and broader economic factors.

Oswal Pumps IPO GMP Trends

The Oswal Pumps IPO GMP has been volatile, reflecting cautious investor sentiment amid broader market uncertainties. Here’s a snapshot of GMP trends leading up to Day 2:

• June 9, 2025: ₹33 (5.37% premium over ₹614)
• June 10, 2025: ₹95 (15.47% premium)
• June 12, 2025: ₹83 (13.5% premium)
• June 13, 2025 (Day 1): ₹70–₹75 (11–12% premium)
• June 16, 2025 (Day 2): ₹57 (9.28% premium, estimated listing price: ₹671)

The GMP dipped from a high of ₹95 to ₹57 by Day 2, signaling reduced expectations for listing gains. This volatility aligns with broader market challenges, including geopolitical tensions and fluctuations in indices like Sensex and Nifty.

What GMP Volatility Means for Investors

• Lower Listing Gains: The current GMP of ₹57 suggests a listing price of ₹671, offering a modest 9.28% gain over the upper price band. This is lower than earlier expectations of 11–15% gains.
• Market Sentiment: The decline in GMP reflects cautious optimism, possibly due to the IPO’s high valuation (P/E of 24.2x) and reliance on government contracts.
• Risk Warning: GMP is not a guaranteed predictor of listing performance. Investors should avoid basing decisions solely on grey market trends and focus on fundamentals.

Financial Performance and Investment Rationale

Oswal Pumps’ Financial Growth

Oswal Pumps has demonstrated impressive financial performance, making it an attractive long-term investment:

• Revenue Growth: From ₹385.04 crore in FY23 to ₹758.57 crore in FY24, with a 45.07% CAGR from FY22 to FY24.
• Profit Surge: Net profit rose from ₹34.2 crore in FY23 to ₹97.67 crore in FY24, with a 134% CAGR from FY22 to 9MFY25.
• 9MFY25 Performance: Revenue of ₹1,065.67 crore and net profit of ₹216.71 crore, with an EBITDA margin of 30.1% and PAT margin of 20.3%.
• Order Book: ₹1,100 crore, with a bid pipeline of ₹3,200 crore, indicating strong growth visibility.

Competitive Strengths

• Market Leadership: One of India’s fastest-growing solar pump manufacturers, benefiting from PM-KUSUM scheme demand.
• Vertically Integrated Operations: In-house manufacturing of pumps, motors, and solar modules enhances efficiency and margins.
• Distribution Network: Expanded from 473 distributors in March 2022 to 925 by December 2024, covering key agricultural states.
• Export Presence: Exports to 17 countries across Asia-Pacific, Middle East, and North Africa.

Risks to Consider

• Dependence on Government Schemes: Heavy reliance on PM-KUSUM could be risky if policies change.
• High Debt: ₹308.57 crore as of April 2025, though IPO proceeds will reduce this burden.
• Receivables Cycle: 140–150 days, posing cash flow challenges.

Analyst Recommendations

• Nirmal Bang: Recommends “Subscribe” due to attractive valuations (P/E of 24.2x vs. peer average of 42x) and growth potential.
• SBI Securities: Suggests subscribing for long-term investors, citing robust financials and a strong order book.
• Mehta Equities: Highlights Oswal’s leadership in solar pumps and policy tailwinds, recommending a long-term investment.

What’s Next for Oswal Pumps IPO?

Key Dates to Watch

• June 17, 2025: IPO subscription closes at 5:00 PM IST.
• June 18, 2025: Allotment finalization. Check status via Link Intime India or BSE/NSE websites.
• June 19, 2025: Refunds initiated, and shares credited to demat accounts.
• June 20, 2025: Listing on BSE and NSE.

Expected Listing Performance

Based on the current GMP of ₹57, the estimated listing price is ₹671, suggesting a 9.28% gain. However, listing performance will depend on:

• Final Subscription Numbers: Higher oversubscription, especially from QIBs, could boost listing gains.
• Market Conditions: Geopolitical tensions and market volatility may impact sentiment.
• Investor Sentiment: Strong NII and retail demand could drive a positive debut, but QIB caution may temper gains.

Post-IPO Growth Plans

Oswal Pumps plans to utilize IPO proceeds to:

• Fund capital expenditure (₹89.86 crore).
• Invest ₹273 crore in Oswal Solar for a new manufacturing unit.
• Repay ₹280 crore in debt and ₹31 crore for Oswal Solar’s debt.
• Enhance automation and technological capabilities through strategic acquisitions.

These initiatives aim to strengthen manufacturing capacity, expand solar module production, and improve margins through backward integration.

Should You Invest?

• Long-Term Investors: The IPO is appealing due to Oswal’s strong financials, leadership in solar pumps, and government-backed demand. Analysts like Nirmal Bang and SBI Securities recommend subscribing for long-term gains.
• Short-Term Investors: Modest GMP and volatility suggest limited listing gains. High valuation and policy risks may deter aggressive short-term bets.
• Risk Considerations: Weigh the dependence on government schemes and high receivables cycle against growth prospects.

Consult a financial advisor to align the investment with your risk appetite and goals.

Case Study: Comparing Oswal Pumps IPO with Shakti Pumps

To understand Oswal Pumps’ potential, let’s compare it with Shakti Pumps, a listed peer in the solar pump sector:

Insights:

• Oswal Pumps trades at a lower P/E ratio, making it more attractively valued.
• Shakti Pumps has a larger order book, but Oswal’s bid pipeline (₹3,200 crore) suggests comparable growth potential.
• Oswal’s focus on vertical integration and PM-KUSUM aligns with Shakti’s strategy, but its newer manufacturing unit could drive efficiency.

This comparison underscores Oswal’s competitive positioning, especially for value-conscious investors.

Follow Fundmetry.com for more financial updates.

FAQ Section

1. What is the subscription status of the Oswal Pumps IPO on Day 2?

As of 5:00 PM IST on June 16, 2025, the Oswal Pumps IPO was subscribed 1.65 times, with applications for 26,167,632 shares against 15,816,581 shares offered. The NII segment led with a 4.65x subscription, followed by RIIs at 1.16x, while QIBs lagged at 0.27x. The surge from Day 1’s 0.42x reflects growing investor interest, particularly among high-net-worth and retail investors. To check real-time status, visit BSE India or NSE India. Investors should monitor Day 3 for potential QIB participation, which could influence listing performance.

2. Why is the GMP of Oswal Pumps IPO volatile?

The GMP volatility of the Oswal Pumps IPO stems from multiple factors. The GMP peaked at ₹95 on June 10, 2025, but dropped to ₹57 by June 16, 2025, indicating a 9.28% premium. This fluctuation is driven by:

• Market Conditions: Geopolitical tensions and market volatility, such as India VIX jumping 10%, have dampened investor sentiment.
• Subscription Trends: Tepid QIB participation (0.27x) contrasts with strong NII demand (4.65x), creating mixed signals.
• High Valuation: A P/E ratio of 24.2x, while lower than peers (42x), raises concerns about short-term gains.
  Investors should avoid relying solely on GMP, as it’s speculative and not an official price indicator. Focus on fundamentals like revenue growth (45.07% CAGR) and order book (₹1,100 crore).

3. Should I subscribe to the Oswal Pumps IPO for short-term or long-term gains?

The decision to subscribe depends on your investment horizon:

• Short-Term: The GMP of ₹57 suggests a listing gain of 9.28% (estimated price: ₹671). However, volatility and sluggish QIB interest may limit immediate upside. Short-term investors should be cautious due to market uncertainties and high valuation risks.
• Long-Term: Analysts like Nirmal Bang and SBI Securities recommend subscribing for long-term gains, citing Oswal’s leadership in solar pumps, 45.07% revenue CAGR, and a ₹3,200 crore bid pipeline. The company’s alignment with PM-KUSUM and debt reduction plans enhance its growth outlook.
  Consult a financial advisor to assess risks like government scheme reliance and high receivables (140–150 days).

4. What happens after the Oswal Pumps IPO subscription closes?

Post-subscription, the following steps occur:

• June 17, 2025: Subscription closes at 5:00 PM IST.
• June 18, 2025: Allotment is finalized. Check status on Link Intime India or BSE/NSE websites using your application number.
• June 19, 2025: Refunds are initiated for non-allotted applications, and shares are credited to demat accounts.
• June 20, 2025: Shares list on BSE and NSE. The listing price will depend on final subscription numbers, GMP trends (currently ₹57), and market conditions.
  Investors should monitor allotment status and prepare for potential listing volatility. Applying through ASBA or UPI ensures a smooth process.

5. How does Oswal Pumps compare to its peers in the solar pump industry?

Oswal Pumps compares favorably to peers like Shakti Pumps:

• Valuation: Oswal’s P/E of 24.2x is lower than Shakti’s 42x, offering better value.
• Revenue: Oswal’s ₹758.57 crore (FY24) is lower than Shakti’s ₹1,370 crore, but its 45.07% CAGR signals faster growth.
• Order Book: Oswal’s ₹1,100 crore order book and ₹3,200 crore bid pipeline rival Shakti’s ₹1,500 crore.
• Market Position: Both benefit from PM-KUSUM, but Oswal’s vertical integration and new manufacturing unit enhance efficiency.
  Investors should weigh Oswal’s lower valuation and growth potential against risks like government dependency.

6. What are the risks of investing in the Oswal Pumps IPO?

Key risks include:

• Government Dependency: Heavy reliance on PM-KUSUM scheme; policy changes could impact profitability.
• High Debt: ₹308.57 crore as of April 2025, though IPO proceeds will reduce this.
• Receivables Cycle: 140–150 days, potentially affecting cash flow.
• Market Volatility: Geopolitical tensions and market fluctuations may affect listing performance.
  Despite these, Oswal’s strong financials (₹216.71 crore net profit in 9MFY25) and analyst endorsements make it appealing for risk-tolerant investors. Consult a financial advisor before applying.

Conclusion

The Oswal Pumps IPO Day 2 Update reveals a subscription surge to 1.65x, driven by strong NII (4.65x) and retail (1.16x) demand, though QIBs remain cautious at 0.27x. The GMP volatility, with a current premium of ₹57 (9.28% gain), reflects market uncertainties but suggests modest listing gains. Looking ahead, the IPO’s closing on June 17, allotment on June 18, and listing on June 20, 2025, are critical milestones. Oswal Pumps’ robust financials, leadership in solar pumps, and alignment with government schemes make it a compelling long-term investment, though risks like government dependency and high debt warrant caution. Share your thoughts in the comments or subscribe to our newsletter for more IPO updates!