Orkla India IPO Day 2: Issue subscribed 2.70x so far. Check GMP, subscription status, review. Apply or not?

Orkla India IPO Day 2: Orkla India IPO subscription status was at 79% on the first day. The retail segment saw a subscription rate of 90%, while the Non-Institutional Investors (NII) portion was booked 1.53 times, and the Qualified Institutional Buyers (QIBs) portion received only 2% of bids. The employee allocation was oversubscribed by 3.27 times. Orkla IPO GMP today is ₹68.

The initial public offering (IPO) for Orkla India, which is known for its MTR and Eastern brands of spices and condiments, is set to open for public subscription on October 29 and will close on October 31. Orkla India IPO price band has been established at ₹695 to ₹730 per share, targeting a valuation of around ₹10,000 crore at the upper limit of this range.

Orkla India, previously recognized as MTR Foods, is a diversified food company based in India that produces an array of products, including spices, ready-to-eat dishes, sweets, and breakfast mixes, under popular brands like MTR, Rasoi Magic, and Eastern.

Orkla India IPO GMP today

Orkla IPO GMP is ₹68. This indicates Orkla India share price were trading at a premium of ₹68 in the grey market on Thursday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Orkla India share price was indicated at ₹798 apiece, which is 9.32% higher than the IPO price of ₹730.

According to the grey market activities observed over the past seven sessions, today the IPO GMP shows a downward trend and is anticipated to decline further. The minimum GMP recorded is ₹68.00, while the maximum GMP stands at ₹145, as per expert analysis.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Orkla India IPO subscription status

Orkla India IPO subscription status was 2.70 times on day 2. The retail portion was subscribed 2.11 times, and NII portion has been booked 7.59 times, Qualified Institutional Buyers (QIBs) portion received 6% bids. Employee portion subscribed 6.20 times.

The company has received bids for 4,32,54,000 shares against 1,59,99,104 shares on offer, at 17:00 IST, according to data on BSE.

Orkla India IPO review

Centrum Broking indicated that the company is likely to gain from the recent GST reductions, which should enhance margins in the short run. Nonetheless, the company is exposed to risks associated with its concentration in South India, fluctuations in raw material prices, and has recorded modest revenue growth of approximately 3% in FY25. While there seems to be potential for quick gains post-listing due to favorable market sentiment and strong brand recognition, maintaining valuations in the long term will necessitate clearer growth prospects and a broader national presence.

Therefore, the brokerage classify the issue as Neutral, recommending participation primarily for short-term gains or for entering post-listing after a price correction.

Master Capital Services indicated that the organisation intends to improve its product variety in retail locations and broaden its distribution network within current regions, while also expanding into new towns and villages, especially prioritizing the development of distribution infrastructure in rural settings. The company plans to reinforce its presence in major global markets where there is a strong demand for genuine South Indian flavours. Investors might view the IPO as a viable long-term investment option.

Orkla India IPO details

Orkla IPO involves a complete offer for sale (OFS) of 2.28 crore equity shares by its promoters and other stakeholders, with no new shares being issued. In this OFS, Orkla Asia Pacific Pte, along with shareholders Navas Meeran and Feroz Meeran, will be selling their shares.

At present, the promoters—Orkla Asia Pacific Pte. Ltd and the Norwegian investment firm Orkla ASA—own a 90% stake in the company, while Navas Meeran and Feroz Meeran each hold a 5% stake.

As this is an OFS, the company will not receive any funds from the IPO; all the money raised will go directly to the selling shareholders.

ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company serve as the lead managers for the book-running of the issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.