Orkla India IPO Gets Fully Subscribed On Day 2, GMP Continues To Slide

The initial public offering (IPO) of Orkla India Ltd was fully subscribed on the second day of bidding, October 30, led mainly by strong demand from retail and non-institutional investors (NIIs). The issue had opened for subscription on October 29 and will close on October 31.

The company aims to raise Rs 1,667.54 crore through the IPO, which is entirely an offer for sale (OFS) of 22.84 million shares by its existing shareholders.

Orkla India IPO Subscription Status: Day 2

As of 10:36 am on Day 2, the IPO was subscribed 1.14 times, exchange data showed. The retail investor category received 1.20 times bids, while NIIs subscribed 2.50 times their allotted quota. The qualified institutional buyer (QIB) segment saw modest participation at 0.02 times

Employees of the company, which are being offered shares at a discount of 9.5 per cent to the upper band of the issue price, booked 4.26 times.

Orkla India IPO Details: Allotment Date, Listing Date, Objective

Retail investors looking to subscribe to the Orkla India IPO can bid for shares in lots of 20, requiring a minimum investment of Rs 14,600 at the upper end of the price band.

The basis of allotment is expected to be finalised on November 3, while the company’s shares are tentatively scheduled to list on the BSE and NSE on November 6. 

ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital are acting as the book-running lead managers to the issue. KFin Technologies is the registrar.

As the IPO is entirely an offer for sale, the company will not receive any proceeds from the issue. The offer will, however, provide existing shareholders an opportunity to partially offload their stakes.

Orkla India IPO Anchor Investor List

Ahead of the IPO, Orkla India raised Rs 499.60 crore from as many as 30 institutional investors during the anchor book round. Anchor investors were allotted 6.84 million equity shares at an anchor allocation price of Rs 730 per share, which is the same as the upper band of the issue price.

Out of the total anchor allocation, 2.90 million equity shares were allocated to six domestic mutual funds which applied through a total of 13 mutual fund schemes.

Nippon India Small Cap Fund was the largest buyer in the anchor round, buying 8,34,560 shares, or 12.19 per cent of the total anchor allocation, for Rs 60.92 crore. Aditya Birla Sun Life Consumption Fund followed with 5,47,960 shares, or 8.01 per cent of the allocation, worth Rs 40 crore.

Other fund houses, including Baroda BNP Paribas, LIC Mutual Fund, Edelweiss, and Bajaj Finserv, also participated in the anchor round through their respective schemes.

Orkla India Ltd: Company Profile

Founded in 1996, Orkla India Ltd is a diversified food company that owns popular brands such as MTR Foods, Eastern Condiments, and Rasoi Magic. A subsidiary of Norway-based Orkla ASA, the company offers over 400 products across spices, ready-to-cook mixes, ready-to-eat meals, snacks, beverages, and desserts.

The FMCG company has a strong presence in southern states like Karnataka, Kerala, Andhra Pradesh, and Telangana. It also exports to 42 countries, including the US and Canada. It has a wide distribution network of over 2,700 distributors and sub-distributors, and operates nine manufacturing facilities with a total installed capacity of 1.82 lakh tonnes per annum.