Orkla India IPO Fully Subscribed: A Boost for Indian Investors?
The initial public offering of Orkla India Ltd., the owner of popular spices and condiments brands MTR and Eastern, has been fully subscribed on its second day of bidding on Thursday. The IPO news has been making waves in the Indian stock market, with many investors eager to get a piece of the action.
What is the Orkla India IPO all about?
The Rs 1,668-crore IPO saw a tepid response on its launch day, but things picked up quickly, with non-institutional investors leading the demand. The public issue consists of only an offer for sale of shares, with promoter Orkla Asia Pacific, along with public shareholders Navas Meeran and Feroz Meeran, participating 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.
Key Details of the Orkla India IPO
- Dates: October 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: November 3
- Credit to Demat: November 4
- Listing Date: November 6
As per the latest data, the Orkla India IPO has been subscribed 170% as of 1:25 p.m., with Qualified Institutional Buyers (QIBs) subscribing 3%, Non-Institutional Investors (NIIS) subscribing 4 times, Retail Individual Investors subscribing 162%, and Employee Reserved subscribing 5.2 times.
What do Analysts Say about the Orkla India IPO?
Analysts at Anand Rathi Research have said that the Orkla IPO is fully priced and recommend a ‘Subscribe-Long Term’ rating to the IPO. The company is valuing at a price-to-earnings of 31.5 times to its FY26 annualized earnings, which is a bit steep. However, the company’s strong brand portfolio and presence in the South Indian culinary market make it an attractive bet for long-term investors.
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. The company has raised nearly Rs 500 crore from anchor investors on Tuesday, including Nippon Life India and Nomura.
Grey Market Premium (GMP) and Expected Listing Price
According to InvestorGain, the latest Grey Market Premium (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. However, it’s essential to note that GMP does not represent official data and is based on speculation.
What’s Next for Orkla India?
The allotment of shares to IPO investors will be done tentatively on November 3, and the company will list on the BSE and NSE on November 6. Orkla India is a multi-category food company deeply rooted in the South Indian culinary market, manufacturing products such as spices and masalas, ready-to-eat sweets, and breakfast mixes under prominent brands such as MTR, Rasoi Magic, and Eastern. The company has a portfolio of over 400 products across these categories.
For Indian investors looking to diversify their portfolio, the Orkla India IPO presents an opportunity to invest in a company with a strong brand presence and a growing market. However, it’s crucial to do your research, consider your risk tolerance, and investment strategies before making any investment decisions.
Conclusion
The Orkla India IPO has been fully subscribed, and the company is all set to list on the BSE and NSE. With a strong brand portfolio and a growing market, Orkla India presents an attractive opportunity for long-term investors. However, it’s essential to keep an eye on the market trends, stock market news, and investment tips to make informed decisions.
