Summary of this article
Orkla India IPO subscribed over 26 times the shares on offer, as of 3 PM on final day
Orkla India IPO GMP climbed nearly 22 per cent to Rs 78 per share over the last three days
Orkla India IPO shares are likely to be listed on the BSE and NSE on November 6
Orkla India IPO GMP: The initial public offering (IPO) of Orkla India Ltd saw robust demand on the final day of subscription, October 31, getting booked over 26 times the shares on offer. The issue had opened for public subscription on October 29.
Meanwhile, in the unlisted market, Orkla India’s shares are commanding a grey market premium (GMP) of Rs 78 per share over the issue price, according to data from platforms that track such trades. The GMP has climbed nearly 22 per cent in the last three days, suggesting strong investor interest in the IPO.
It is worth noting that GMPs are not always reliable indicators of listing performance. They simply reflect the prevailing sentiment and demand for the shares in the unofficial market ahead of their debut on the exchanges.
Orkla India IPO Subscription Details
As of 3:00 PM, Orkla India IPO was subscribed 26.30 times. The qualified institutional investor (QIB) quota was booked 46 times, the non-institutional investor (NII) category was subscribed 48.66 times, and the retail investor category saw only 5.52 times subscription. Employees of the company, which were offered stocks at a discount of 9.50 per cent to the upper band of the issue price, also saw 12.25 times subscription.
Orkla India IPO Details
Orkla India Ltd aims to raise Rs 1,667.54 crore through its IPO, which comprises an entirely offer-for-sale (OFS) component of 22.8 million shares. This means all the proceeds from the issue will go to the selling shareholders, and no fresh issue of shares will be received by the company. The IPO is only providing the promoters an opportunity to pare their stakes in the firm.
The company has fixed the price band for the issue at Rs 695-730 per share. Retail investors can subscribe to the IPO in lots of 20 shares, requiring a minimum investment of Rs 14,600.
The basis of share allotment is expected to be finalised on November 3, while the equity shares are likely to be listed on the BSE and NSE on November 6.
ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital are the book-running lead managers to the issue, and KFin Technologies is the registrar.
Orkla India: Company Profile
Established in 1996, Orkla India Ltd is a diversified food company that markets a wide range of products under popular Indian brands such as MTR Foods, Eastern Condiments, and Rasoi Magic. The company is a subsidiary of Orkla ASA, a Norway-based industrial investment group with a strong focus on branded consumer goods.
Orkla India’s portfolio includes more than 400 products across categories like blended and pure spices, ready-to-cook (RTC) mixes, ready-to-eat (RTE) meals, snacks, beverages, and desserts, catering to diverse consumer tastes across India.
