Orkla India IPO closes with 49x subscription, QIB portion booked 118x: Check latest GMP

Orkla India IPO Day 3

The Rs 1,667-crore initial public offering of Orkla India, the company which owns popular packaged food brands MTR, has been subscribed nearly 49 times its offer size (487.3 percent) on its third and final day of public bidding (October 31).

The maiden public issue of the company received bids for around 77.97 crore shares, as against the offer size of nearly 1.6 crore shares, according to data on NSE. Qualified Institutional Buyers (QIBs) led the subscription numbers, booking their reserved portion a whopping 117.63 times. Retail investors subscribed their reserved portion over 7 times. Non Institutional Investors (NII) have booked the portion kept for them 54.42 times.

Ahead of listing, the unlisted shares of the company were trading with 11.78 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This has increased from the 9.59 percent GMP quoted by the site yesterday, and 9.32 percent quoted a day before that.

According to IPO Watch, the unlisted shares of the company were trading with 10.27 percent GMP over the IPO price.

Orkla India launched its IPO to raise Rs 1,667 crore entirely through an offer for sale (OFS) of 2.28 crore shares by the existing promoter Orkla Asia Pacific, and other selling shareholders Navas Meeran and Feroz Meeran. This means that none of the IPO proceeds will go to the company as there is no fresh issue component in the IPO.

The company set a price band of Rs 695-730 per share for its maiden public issue. Retail investors could bid for a minimum of 20 shares, requiring a minimum investment of Rs 14,600, and in multiples thereafter.

The IPO was open for public bidding between October 29 and October 31. The share allotments will likely be finalized by November 3, and the shares are scheduled to debut on stock exchanges on November 6.

A day before the IPO opened for public bidding, Orkla India announced that it has raised Rs 499.6 crore from 30 institutional investors via anchor book on October 28. Nippon Life India, Aditya Birla Sun Life AMC, Ashoka WhiteOak, Nomura Funds, Government Pension Fund Global, Jupiter Global Fund, Pinebridge Global Funds, Baroda BNP Paribas MF, LIC MF, and Edelweiss were the institutional investors who participated in the anchor book.

Tata Investment Corporation, Bajaj Finserv MF, Aurigin Master Fund, Viridian Asia Opportunities Master Fund, Societe Generale, and Copthall Mauritius Investment also invested in the company.

India’s spices and convenience foods market is witnessing strong growth, driven by evolving consumer preferences, rising incomes, rapidly growing quick-commerce platforms and rapid urbanization, said Master Capital Services.

With a strong heritage, local flavor expertise, and focus on automation, quality, and brand trust Orkla India Limited, through its flagship brands MTR and Eastern, is strategically positioned to capitalize on the strong growth in India’s spices and convenience foods sectors, Mater Capital further said, while adding that investors can consider the IPO as a potential long-term investment opportunity.

Angel One gave a ‘Subscribe’ rating to the IPO. “At the upper band price of ₹730, Orkla India is valued at a post-IPO P/E of 31.68x, which appears fairly priced considering its diversified product portfolio, strong market presence across key FMCG categories, resilient financial performance and long-term growth visibility,” it said.

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