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The Rs 1,667 crore initial public offering (IPO) of Orkla India Ltd, the maker of popular packaged food brands MTR and Eastern, opened for public bidding on Tuesday and was subscribed 27% on Day 1 so far. IPO Subscription Snapshot The maiden issue received 42.98 lakh bids against a total offer size of nearly 1.6 crore shares. Employee quota: Fully subscribedNon-Institutional Investors (NII): 40% subscribedRetail portion: 36% subscribedQualified Institutional Buyers (QIBs): Yet to make significant bids The IPO will remain open for public subscription from October 29 to October 31, with allotments expected to be finalized by November 3 and listing scheduled for November 6. Grey Market Premium Cools Off Ahead of listing, the unlisted shares of Orkla India were trading at a 9% premium in the grey market, data from Investorgain showed. This marks a decline from 11% a day earlier and 20% on October 24. Meanwhile, IPO Watch pegged the company’s GMP at over 14%, indicating mixed investor sentiment after the initial enthusiasm last week. Offer Details & Pricing The IPO aims to raise Rs 1,667 crore entirely through an offer for sale (OFS) of 2.28 crore shares by existing shareholders — Orkla Asia Pacific, Navas Meeran, and Feroz Meeran. Since the issue does not include any fresh equity, the company will not receive any proceeds from the IPO. The price band has been fixed at Rs 695–Rs 730 per share, and retail investors can bid for a minimum of 20 shares (Rs 14,600 at the upper end), and in multiples thereafter. Anchor Book Draws Strong Institutional Interest A day before the IPO opened, Orkla India raised Rs 499.6 crore from 30 institutional investors through the anchor book on October 28. Key anchor participants included: Nippon Life IndiaAditya Birla Sun Life AMCAshoka WhiteOakNomura FundsGovernment Pension Fund GlobalJupiter Global FundPinebridge Global FundsBaroda BNP Paribas MFLIC MFEdelweiss Other notable investors were Tata Investment Corporation, Bajaj Finserv MF, Aurigin Master Fund, Viridian Asia Opportunities Master Fund, Societe Generale, and Copthall Mauritius Investment. Analysts’ View: Fairly Priced, Long-Term Play Brokerages remain moderately optimistic about Orkla India’s listing prospects. Master Capital Services noted that India’s spices and convenience foods segment is witnessing robust expansion, supported by rising incomes, growing urbanization, and quick-commerce adoption. “With a strong heritage, local flavor expertise, and focus on automation, Orkla India is strategically positioned to capitalize on the country’s packaged food boom,” the brokerage said. Angel One assigned a ‘Subscribe’ rating to the IPO. “At the upper band of Rs 730, Orkla India is valued at a post-IPO P/E of 31.68x, which appears fairly priced considering its diversified portfolio, resilient financials, and long-term growth visibility,” the note stated. While tepid QIB participation kept Day 1 subscription modest, analysts say institutional inflows are likely to build over the next two days. The cooling grey market premium suggests a cautious but constructive tone ahead of listing.
