- Orkla India IPO fully subscribed on second day, led by non-institutional investors
- IPO is an offer for sale; company receives no proceeds from the Rs 1,668 crore issue
- Orkla India raised nearly Rs 500 crore from anchor investors before IPO launch
The initial public offering of Orkla India Ltd., the owner of spices and condiments brands MTR and Eastern, was fully subscribed on its second day of bidding on Thursday. Demand has been led by led by non-institutional investors.
The Rs 1,668-crore IPO saw a tepid response on its launch day.
The public issue consists of only an offer for sale of shares. Promoter Orkla Asia Pacific, along with public shareholders Navas Meeran and Feroz Meeran, will participate in the OFS.
Since it is an OFS, the company will not receive any proceeds from the IPO, and the entire amount of money will go to the selling shareholders.
The company raised nearly Rs 500 crore from anchor investors on Tuesday, including Nippon Life India and Nomura.
The allotment of shares to IPO investors will be done tentatively on Nov. 3. Orkla India will list on the BSE and NSE on Nov. 6.
Orkla India is a multi-category food company deeply rooted in the South Indian culinary. It manufactures products such as spices and masalas, ready-to-eat sweets, and breakfast mixes under prominent brands such as MTR, Rasoi Magic, and Eastern and has a portfolio of over 400 products across these categories.
At the upper price band, the company is valuing at price-to-earnings of 31.5 times to its FY26 annualized earnings.
Analysts at Anand Rathi Research said the Orkla IPO is fully priced and recommend a 'Subscribe-Long Term' rating to the IPO.
ICICI Securities Ltd., Citigroup Global Markets India Pvt., J.P. Morgan India Pvt., and Kotak Mahindra Capital Co. are the lead book-running managers to the IPO.
Orkla India IPO Details
Dates: Oct. 29-31
Price Band: Rs 695-730 per share
Lot Size: 20 per lot
Issue size: Offer for sale of 2.28 crore shares worth up to Rs 1,668 crore
Indicated Market Cap: Rs 10,000 crore
Date of allotment: Nov. 3
Credit To Demat: Nov. 4
Listing Date: Nov. 6
Subscription Status
The Orkla India IPO has been subscribed 170% as of 1:25 p.m.
Qualified Institutional Buyers (QIBs): 3%
Non Institutional Investors (NIIS): 4 times
Retail Individual Investors: 162%
Employee Reserved: 5.2 times
Orkla India IPO GMP Today
According to InvestorGain, the latest GMP for the Orkla India IPO stood at Rs 68. With an upper price band of Rs 730 per share, the estimated listing price is likely to be Rs 798, as per the latest GMP. This implies an expected listing gain of 9% per share.
Note: GMP does not represent official data and is based on speculation.
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