According to market observers, the stock is trading at a grey market premium (GMP) of around Rs 9.3 – slightly lower than Rs 10.5 earlier – suggesting a potential listing in the Rs 795-800 range, assuming stable market conditions. The IPO will remain open until Friday.
Orkla India IPO Subscription Status
At the close of Day 1, the Orkla India IPO was 79% subscribed overall, against the 1.59 crore shares on offer.Retail Individual Investors (RIIs) showed strong participation, subscribing to 90% of the 79.84 lakh shares reserved for them. Non-Institutional Investors (NIIs) also displayed healthy interest, with their 34.21 lakh share quota subscribed 1.53 times.
However, Qualified Institutional Buyers (QIBs) remained largely on the sidelines, bidding for only 2% of their allotted 45.62 lakh shares so far.
Orkla India IPO GMP Today
As of October 30, the grey market premium (GMP) for the Orkla India IPO stands at Rs 68. Based on the IPO price band of Rs 730 per share, this indicates a potential listing price of around Rs 798, assuming current sentiment holds.This translates to an expected gain of about 9.3% per share for investors subscribing at the issue price, reflecting positive market sentiment and steady grey market demand ahead of the listing.
Orkla India IPO Details
The Rs 1,667 crore IPO of Orkla India is a complete Offer for Sale (OFS) by its Norwegian parent, Orkla ASA, and affiliated entities, with no fresh issue component. The price band has been fixed at Rs 695-730 per share, and retail investors can apply for a minimum of 20 shares, requiring an investment of Rs 14,600.
The issue allocation reserves up to 50% for Qualified Institutional Buyers (QIBs), at least 35% for Retail Individual Investors (RIIs), and 15% for Non-Institutional Investors (NIIs).
Orkla India shares are slated to list on Thursday, November 6, 2025, on both the BSE and NSE. ICICI Securities is the book-running lead manager, while KFin Technologies serves as the registrar to the issue.
Company Overview
Founded in 1996, Orkla India is a leading player in the packaged foods and condiments industry, offering a diverse portfolio of over 400 products across instant mixes, spices, ready-to-eat meals, snacks, and beverages. Its flagship brands, MTR and Eastern, hold a 31–42% market share in key South Indian states and an 18.6% share in India’s overall convenience food segment.
The company has a strong domestic and global footprint, exporting to more than 40 countries, including the GCC region, the United States, and Canada. As of March 2025, Orkla India operates nine manufacturing facilities across India with a combined production capacity of 182,000 tonnes per annum, supported by a robust distribution network of 834 distributors and nearly 1,900 sub-distributors.
Strong Financial Performance in FY25
In FY25, Orkla India reported a total income of Rs 2,455 crore and a net profit of Rs 256 crore, marking a 13% year-on-year growth. The company maintained strong profitability, with an EBITDA margin of 16.6% and a return on capital employed (ROCE) of 32.7%, underscoring its robust financial health and operational efficiency.
Analyst Take on Orkla India IPO
Rajan Shinde, Research Analyst at Mehta Equities, said the IPO offers investors an opportunity to participate in a market-leading packaged food company backed by iconic brands like MTR and Eastern. He highlighted Orkla India’s diverse product portfolio, strong regional presence, and steady export business as key strengths positioning it well in India’s rapidly expanding food and spice market.
Shinde noted that the valuation appears reasonable, stating, “At the upper price band of Rs 730, Orkla India’s market capitalization is around Rs 10,000 crore, or roughly 31.7 times FY26 annualized earnings — a level justified by its brand strength and market leadership. However, investors should note that this is a 100% Offer for Sale (OFS), meaning no new funds will be infused into the company.”
Considering these factors, Mehta Equities has given the IPO a ‘Subscribe for long-term’ rating, citing Orkla India’s robust distribution network, expanding export footprint, and backing from its global parent as strong positives for long-term investors.
Anand Rathi Research View:
Anand Rathi noted that Orkla India operates modern, large-scale manufacturing facilities supported by strong quality control and supply chain systems. Its growth strategy is driven by continuous innovation, category diversification, and premiumisation, helping reinforce its leadership in India’s packaged food segment.
At the upper price band, the company is valued at a P/E of 31.5x based on FY26 annualized earnings, with a post-issue market capitalization of around Rs 10,000 crore. Anand Rathi considers the IPO fully priced and has also recommended a “Subscribe – Long Term” rating.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)