According to market observers, the stock is currently trading at a grey market premium (GMP) of around 9.5%, indicating that the shares could list in the at Rs 800, provided market sentiment remains steady.
Orkla India IPO Subscription Update
By the end of Day 2, the Orkla India IPO was 2.70 times subscribed overall, according to data from the BSE.Retail Individual Investors (RIIs) demonstrated strong interest, bidding for 2.11 times the 79.84 lakh shares allocated to them.
Non-Institutional Investors (NIIs) also showed robust participation, with their quota of 34.21 lakh shares receiving 7.59 times subscription.
In contrast, Qualified Institutional Buyers (QIBs) had bid for only 6% of their 45.62 lakh shares allotment at this point.
Orkla India IPO GMP Today
As of October 31, the grey market premium (GMP) for the Orkla India IPO is reported at Rs 70. Based on the IPO price band of Rs 730 per share, this indicates a potential listing price of around Rs 800, assuming current market sentiment holds steady.
This translates to an estimated gain of about 9.5% per share for investors who subscribe at the issue price, reflecting positive investor sentiment and consistent grey market demand ahead of the listing.
Orkla India IPO: Key Offer Highlights
The Rs 1,667 crore Orkla India IPO is a complete Offer for Sale (OFS) by its Norwegian parent Orkla ASA and associated entities, with no fresh issue component. The price band is set between Rs 695 and Rs 730 per share, and retail investors can apply for a minimum of 20 shares, translating to a minimum investment of Rs 14,600.
The issue allocation structure reserves up to 50% for Qualified Institutional Buyers (QIBs), at least 35% for Retail Individual Investors (RIIs), and 15% for Non-Institutional Investors (NIIs).
The company’s shares are expected to list on Thursday, November 6, 2025, on both the BSE and NSE. ICICI Securities is acting as the book-running lead manager, while KFin Technologies serves as the registrar to the issue.
About Orkla India
Established in 1996, Orkla India is a leading player in the packaged foods and condiments sector, offering a wide range of over 400 products, including instant mixes, spices, ready-to-eat meals, snacks, and beverages. Its flagship brands, MTR and Eastern, command a 31–42% market share in key South Indian markets and an 18.6% share in India’s overall convenience food segment.
The company has a strong domestic footprint along with international operations across 40+ countries, including the GCC, the US, and Canada. As of March 2025, Orkla India operates nine manufacturing facilities across India, with a total production capacity of 182,000 tonnes per annum, supported by 834 distributors and nearly 1,900 sub-distributors.
Financial Highlights: FY25 Performance
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 showcased strong profitability with an EBITDA margin of 16.6% and a return on capital employed (ROCE) of 32.7%, underscoring its financial resilience and operational efficiency.
Analyst Views on the Orkla India IPO
Rajan Shinde, Research Analyst at Mehta Equities, noted that the Orkla India IPO provides an opportunity to invest in a market-leading packaged food company backed by trusted brands such as MTR and Eastern. He highlighted the company’s diverse product portfolio, strong presence in South India, and steady export performance as key strengths positioning it well in India’s expanding food and spice market.
Shinde further observed that the valuation appears fair. “At the upper end of the price band of Rs 730, Orkla India’s market capitalization is approximately Rs 10,000 crore, translating to around 31.7x FY26 annualized earnings. This seems justified given its brand equity and market leadership. However, since the issue is a 100% Offer for Sale (OFS), no fresh capital will be infused into the company,” he added.
Taking these factors into account, Mehta Equities has given the IPO a ‘Subscribe for Long-Term’ recommendation, citing Orkla India’s strong distribution network, export presence, and the backing of its global parent as key positives for patient investors.
According to Anand Rathi Research, Orkla India operates modern, large-scale manufacturing facilities supported by robust quality control and supply chain systems. The company’s growth strategy emphasizes continuous innovation, category diversification, and premiumisation, helping it strengthen its leadership position in India’s packaged food sector.
At the upper price band, Orkla India is valued at a P/E of 31.5x based on FY26 annualized earnings, with an estimated post-issue market capitalization of Rs 10,000 crore. Anand Rathi views the IPO as fairly valued and recommends a “Subscribe – Long Term” rating for investors seeking sustained growth potential.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)