Orkla India IPO: Multi Category Food Retailer’s Shares Make Modest Debut With 2% Premium

Orkla India IPO Listing Date: Orkla India Ltd shares listed on the NSE and BSE on November 6. Shares of the multi category food retailer made a muted debut on the exchanges. Orkla India shares listed with over 2 per cent premium compared to the issue price.

Orkla India shares made their debut at Rs 750 per share with gains of 2.75 per cent against the issue price of Rs 730 per share on the NSE. Orkla India shares listed at Rs 751.50 apiece with 2.94 per cent premium on the BSE.

Orkla India IPO Listing Gain

Retail investors who were allotted a minimum of one lot or 20 shares would have gained at least Rs 402 (Rs 750.1 - Rs 730 x 20). As many as 2.61 lakh shares of Orkla India Ltd changed hands on the BSE and the total market capitalisation of the company stood at Rs 10,274.19 crore.

Orkla India IPO: Details

Orkla India Ltd raised Rs 1,667.54 crore through its public issue. The fast-moving consumer goods (FMCG) company’s public issue consisted of an offer for sale of 22.8 million shares. Orkla India IPO price band was set at Rs 695 to Rs 730.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 20 shares, which aggregated to an investment of Rs 14,600. Orkla India IPO saw strong demand in its three-day subscription window. Orkla India IPO was subscribed 48.73 times across categories. As many as 779.59 million shares of Orkla India were bid for against the 15.9 million shares offered for subscription.

In the three-day bidding window, qualified institutional bidders led the demand for Orkla India Ltd shares, booking their quota 117.63 times. On the other hand, non-institutional investors and retail individual investors booked their quota 54.42 times and 7.05 times respectively. Employees of Orkla India Ltd subscribed their quota 15.13 times in the three-day bidding window.

Orkla India IPO: Objective

Orkla India seeks to achieve the benefits of listing its equity shares on the stock exchanges (BSE and NSE). The company also seeks to improve its visibility and strengthen its brand equity in the Indian FMCG market.

Orkla India: Business Model

Orkla India operates a multi-category FMCG business. The company sells several packaged food products under the brand names ‘MTR’ and ‘Eastern Condiments’. The company sells products like convenience foods, including ready-to-eat (RTE) meals, ready-to-cook (RTC) mixes (breakfast, sweet, and dessert mixes) under the MTR brand. The company sells blended and pure spices under the Eastern Condiments brand. The company has a distribution network, in South India and an international business unit which exports products to over 40 countries, targeting the Indian diaspora.

Orkla India: Peers

Following the listing of its shares, Orkla India has joined peers such as Tata Consumer Products Ltd. Some of the company’s other competitors across verticals include Hindustan Unilever (HUL), Nestlé India, Britannia Industries, Marico Ltd, ITC, Dabur India, Bikaji Foods International and Patanjali Foods