Orkla India, a prominent player in the Indian packaged food sector, made its debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today, November 6, 2025. The IPO, which closed with a strong oversubscription of 48.73 times, witnessed a muted listing, opening at a premium of approximately 2.75% over the issue price of ₹730.
On the BSE, the shares listed at ₹751.50, a 3% increase, while on the NSE, they debuted at ₹750.10, reflecting a 2.7% premium. This was lower than anticipated, considering the grey market premium (GMP) which had earlier indicated a potential listing price of ₹798, representing a 9.32% premium.
IPO Details and Subscription Status
The Orkla India IPO was worth ₹1,667.54 crore and was entirely an offer-for-sale (OFS) of 2.28 crore equity shares. The IPO was open for subscription from October 29 to October 31, 2025, with a price band of ₹695 to ₹730 per share. The issue was oversubscribed 48.73 times, with bids for 77.97 crore shares against the 1.6 crore shares on offer. Qualified institutional buyers (QIBs) subscribed 117.63 times their allotted portion, while non-institutional investors (NIIs) subscribed 54.42 times. Retail investors and employees subscribed 7.05 times and 15.13 times, respectively.
Financial Performance and Company Overview
Orkla India, formerly known as MTR Foods Limited, boasts a legacy of strong presence in spices and convenience foods. The company owns leading brands like MTR Foods, Eastern Condiments, and Rasoi Magic. For fiscal year 2025, Orkla India reported revenue of ₹2,394.7 crore with an EBITDA margin of 16.6% and a PAT margin of 10.7%. The company has demonstrated consistent revenue growth, driven by brand loyalty and repeat purchases in its core spices segment.
Grey Market Premium (GMP)
Ahead of the listing, Orkla India's shares were trading at a grey market premium (GMP) of ₹66, which indicated a potential 9% upside from the IPO price band. However, the GMP is not an official indicator and is subject to market volatility. The GMP had declined from ₹95 on the final day of subscription to ₹72 on November 3, and further to ₹68 on the morning of listing.
Market Sentiment and Expert Views
Despite the strong subscription numbers, the muted listing suggests a cautious market sentiment. Some analysts had anticipated a listing gain of around 10-12%. However, the actual listing fell short of these expectations.
Should You Buy, Sell, or Hold?
Given the muted listing, investors may be wondering about the appropriate course of action. Here's a breakdown of factors to consider:
- Strong Fundamentals: Orkla India has established brands, a wide distribution network, and consistent financial performance.
- Regional Concentration: A significant portion of the company's revenue comes from South India, which could be a risk factor.
- Valuation: The IPO was priced at over 38 times its trailing twelve months (TTM) earnings. While this is lower than some of its peers, it is not necessarily a cheap valuation.
- Growth Potential: The Indian packaged food sector is expected to grow at a CAGR of 12-14% over the next five years, presenting a favorable landscape for Orkla India.
Recommendations
- For investors who received allotment: It may be prudent to book partial profits, considering the muted listing and lock in some gains. The remaining shares could be held for the medium to long term, keeping in mind the company's fundamentals and growth potential.
- For investors looking to enter: It would be wise to wait and watch how the stock performs in the initial days of trading. Investors can consider accumulating the stock on dips, focusing on the long-term prospects of the company.
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
