Suspense crime, Digital Desk : The Indian stock market has a new investment opportunity as Oswal Pumps Limited, a prominent manufacturer of solar and submersible pumps, launched its Initial Public Offering (IPO) today, June 13. The public issue will be open for subscription until Tuesday, June 18, offering investors a chance to buy into the company’s growth story.
Here are the essential details for potential investors:
- Price Band: The company has set the price for its shares in a range of ₹450 to ₹465 per equity share.
- Lot Size: Investors must bid for a minimum of 32 shares, which constitutes one lot. At the upper end of the price band, the minimum investment required for retail investors is ₹14,880.
- Issue Size: The IPO is a fresh issue of shares aiming to raise up to ₹350 crore. This means the entire proceeds from the offering will go directly to the company to fund its future plans.
Strong Early Buzz in the Grey Market
In a sign of strong early interest, the company’s shares are commanding a significant premium in the grey market. The Grey Market Premium (GMP) for Oswal Pumps is currently reported to be ₹120 per share.
The GMP is an informal indicator of how the stock might perform on its listing day. A GMP of ₹120 suggests that the market anticipates the shares could list at around ₹585 (₹465 issue price + ₹120 premium), representing a potential listing gain of over 25%. However, it’s important to note that the GMP is not an official figure and can change rapidly based on market sentiment.
How Will the Company Use the Funds?
Oswal Pumps plans to utilize the capital raised from the IPO for several key objectives:
- Debt Repayment: A portion of the funds will be used to pay off some of the company’s existing borrowings.
- Capital Expenditure: The majority of the proceeds are earmarked for funding the company’s expansion and purchasing new machinery and equipment.
- General Corporate Purposes: The remaining funds will be used for day-to-day operational needs and other corporate activities.
Upon successful completion of the IPO, the company’s shares are slated to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
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