The Initial Public Offering (IPO) of Orkla India, the parent company of popular spice and condiment brands MTR and Eastern, witnessed strong investor interest on its second day, with the issue being fully subscribed. The IPO, which opened for subscription on October 29, 2025, and closes on October 31, 2025, aims to raise ₹1,667.54 crore through an offer for sale of 2.28 crore equity shares.
Subscription Status
On Day 2, the overall subscription stood at 79%. The retail segment saw a subscription rate of 90%, indicating strong participation from individual investors. The Non-Institutional Investors (NII) portion was booked 1.53 times, reflecting good interest from high-net-worth individuals. However, the Qualified Institutional Buyers (QIBs) portion received relatively fewer bids, with only 2% subscription. The employee allocation was oversubscribed by 3.27 times. On the first day, the IPO was subscribed 0.75 times. The retail portion was subscribed 0.87 times, while the non-institutional investor (NII) category subscribed 1.45 times.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Orkla India IPO is ₹68. This suggests that the company's shares are trading at a premium of ₹68 in the grey market. InvestorGain.com estimates the listing price to be ₹798 per share, which is 9.32% higher than the IPO price of ₹730, considering the upper end of the IPO price band and the current premium in the grey market. However, the GMP has shown a downward trend over the past seven sessions and is anticipated to decline further. It's important to note that GMP is speculative and subject to volatility, and investment decisions shouldn't be solely based on it.
IPO Details
The IPO price band is fixed at ₹695 to ₹730 per equity share. The minimum application size is 20 shares, requiring an investment of ₹14,600 at the upper price band. The IPO is entirely an offer for sale (OFS) of 2.28 crore equity shares by its promoters and other stakeholders, with no new shares being issued. The selling shareholders include Orkla Asia Pacific Pte, Navas Meeran, and Feroz Meeran. Since it is an OFS, the company will not receive any funds from the IPO; all the money raised will go directly to the selling shareholders.
Company Overview
Orkla India, formerly known as MTR Foods, is a multi-faceted food company that produces a variety of products, including spices and masalas, ready-to-eat meals, sweets, and breakfast mixes. These products are marketed under well-known brands such as MTR, Rasoi Magic, and Eastern. The company has a strong presence in South India and a portfolio of over 400 products.
Financial Performance
For FY25, Orkla India reported revenue of ₹2,455 crore and a net profit of ₹255.69 crore, resulting in a net margin of 10.7%. The company's return on net worth (RoNW) stood at 13.8%, while return on capital employed (RoCE) was 32.7%.
Other Important Information
The allotment of shares is expected to be finalized on November 3, 2025, and the shares are likely to be listed on the BSE and NSE on November 6, 2025.
