Orkla India IPO Subscriptions Rise to 1.39x by Day Two; QIB Demand Remains Tepid

Post by : Bianca Suleiman

By mid-day on Wednesday, the Orkla India public offer had accumulated overall subscriptions of 1.39 times on its second day of bidding. The issue, which began on October 29 and closes October 31, continues to attract a range of investor cohorts.

The retail tranche registered 1.42 times subscription, while non-institutional investors drove stronger demand at 3.13 times. In contrast, Qualified Institutional Buyers submitted only about 2% worth of bids, signalling limited institutional appetite. The employee portion was heavily oversubscribed at 4.62 times, reflecting firm interest from within the company.

On its opening day, the IPO had achieved 79% subscription, underpinned by robust retail engagement and significant bids from high-net-worth investors.

Grey Market Premium (GMP) Trends Downward

Market trackers report the grey market premium for Orkla India at ₹68 today. Applying the upper price band of ₹730 per share, the unofficial listing estimate is approximately ₹798 a share, which would be near a 9.32% premium to the issue price.

Nevertheless, the GMP has shown signs of moderation; over the past seven days it has varied between ₹68 and ₹145, pointing to a more cautious stance among aftermarket participants as the offer period nears its end.

IPO Price Band and Offer Details

The public issue is set at a price band of ₹695 to ₹730 per share, implying a top-end market capitalisation close to ₹10,000 crore. This is a full offer for sale totalling 2.28 crore equity shares, so no fresh equity will be raised through the transaction.

Promoters Orkla Asia Pacific Pte Ltd and Orkla ASA, together with shareholders Navas Meeran and Feroz Meeran, are selling portions of their holdings as part of this OFS.

At present, Orkla Asia Pacific Pte Ltd and Orkla ASA collectively control 90% of the company, while Navas Meeran and Feroz Meeran each hold a 5% stake.

Company Snapshot

Previously operating as MTR Foods, Orkla India is a prominent packaged-food firm behind brands such as MTR, Eastern and Rasoi Magic. Its assortment spans spices, ready-to-eat meals, breakfast mixes and confectionery, servicing a wide consumer base across India and growing export markets.

Rooted strongly in South India but expanding nationwide, Orkla India continues to build on its market presence in the branded food segment.

Final Day Ahead

As the IPO enters its closing day, investor reaction is described as cautiously optimistic. Given steady retail and NII participation and strong internal demand, attention will now focus on the closing subscription figures and the share’s listing performance next week.