The IPO, which was open between October 29 and October 31, received a strong response from all investor categories. Overall, the issue was subscribed 48.7 times, led by strong institutional demand. The QIB portion was subscribed 117.6 times, NII 54.4 times, and retail 7 times, reflecting broad-based participation despite the entire issue being a pure offer for sale (OFS).
Analysts say that even though the IPO did not include any fresh capital raise, investor enthusiasm has been fueled by Orkla’s strong brand equity, market leadership in packaged foods and spices, and the backing of Norwegian multinational Orkla ASA. The company’s diversified product portfolio across convenience foods, ready mixes, and condiments gives it a steady growth profile, while its balance sheet remains robust with minimal debt.
According to Prashanth Tapse, Senior VP Research at Mehta Equities, the issue witnessed higher-than-expected subscription despite muted market sentiment, reflecting “strong investor interest and confidence in the company’s fundamentals.”
“Orkla India presents a compelling long-term structural growth story. Investors allotted shares should hold from a long-term perspective, while non-allottees may consider a ‘wait and watch’ approach for post-listing corrections,” he said.
Orkla India also attracted marquee institutional participation in its Rs 499.6 crore anchor book, which was subscribed on October 28. Top domestic fund houses such as HDFC Mutual Fund, SBI MF, ICICI Prudential MF, Kotak MF, Axis MF, and Aditya Birla Sun Life MF were joined by major foreign sovereign investors including the Government of Singapore and Norway’s Government Pension Fund Global.Institutions are likely betting on the company’s consistent financial performance and the expanding packaged food market in India, which continues to benefit from rising disposable incomes and urban consumption trends.
Financial performance and valuation
Orkla India reported revenues of Rs 2,455 crore in FY25, up 3% year-on-year, and a profit after tax of Rs 256 crore, up 13%. The company enjoys healthy profitability with EBITDA margins of 16.6% and ROCE of 32.7%. At the upper price band, the issue valued the company at 31.7 times FY25 earnings.
Analysts note that post-listing performance will depend on the company’s ability to sustain double-digit earnings growth and expand its distribution network beyond southern India.
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