Market observers note that the stock is currently commanding a grey market premium (GMP) of around 10.5%, suggesting that shares could list in the Rs 805–810 range if sentiment holds. The IPO is entirely an Offer for Sale (OFS) by its Norwegian parent, Orkla ASA, and affiliated entities, with no fresh issue component.
Orkla India IPO Subscription Status
As of 10:50 am on the first day of bidding, the Orkla India IPO was 22% subscribed overall, with 1.59 crore shares on offer.Breaking it down by category: Retail Individual Investors (RIIs) showed strong interest, subscribing to 22% of the 79.84 lakh shares allocated to them. Non-Institutional Investors (NIIs) also participated actively, with 25% subscription on the 34.21 lakh shares available for this category.
However, Qualified Institutional Buyers (QIBs) had not yet placed any bids for the 45.62 lakh shares reserved for them as of this time. This indicates that while retail and non-institutional segments are showing early interest, institutional participation is still to pick up, which is often typical in the early hours of an IPO.
Orkla India IPO GMP Today
The latest grey market premium (GMP) for the Orkla India IPO, last updated on October 29, stands at Rs 77. With the IPO priced at a band of Rs 730 per share, this indicates an estimated listing price of around Rs 807 if the current sentiment holds.This translates to an expected gain of approximately 10.55% per share for investors subscribing at the IPO price, reflecting positive market interest and strong demand in the grey market ahead of the listing.
Orkla India IPO Details
The Orkla India IPO is priced between Rs 695 and Rs 730 per share, with a minimum application of 20 shares, meaning retail investors need to invest at least Rs 14,600. The issue allocation has been structured to favour different investor categories: up to 50% for qualified institutional buyers (QIBs), at least 35% for retail investors, and 15% for non-institutional investors (NIIs).
The shares are scheduled to list on Thursday, November 6, 2025, on both the BSE and NSE, with ICICI Securities as the book-running lead manager and KFin Technologies as the registrar.
Company Overview
Incorporated in 1996, Orkla India is a leading player in the packaged food and condiments sector, offering over 400 products across instant mixes, spices, ready-to-eat meals, snacks, and beverages. Its flagship brands – MTR and Eastern hold 31–42% market share in key South Indian states and 18.6% share in India’s convenience food segment.
Orkla India operates domestically and exports to over 40 countries, including the GCC, the US, and Canada. As of March 2025, the company has nine manufacturing facilities in India with a combined capacity of 182,000 tonnes per annum, supported by 834 distributors and nearly 1,900 sub-distributors.
Financial Performance
For 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’s EBITDA margin stood at 16.6%, while return on capital employed (ROCE) was 32.7%, reflecting a robust financial position.
IPO Review
Analysts are cautiously positive about the Orkla India IPO, pointing to its strong brand presence and consistent margins, while noting that the lack of a fresh capital raise is a potential limitation.
Rajan Shinde, Research Analyst at Mehta Equities, stated that the IPO provides investors an opportunity to invest in a market-leading packaged food company supported by well-known brands like MTR and Eastern. He highlighted the company’s diverse product portfolio, strong regional presence, and steady export business as factors that position it well in India’s rapidly growing food and spice market.
Shinde added that the valuation is reasonable. “At the upper price band of Rs 730, Orkla India is valued at a market capitalisation of Rs 10,000 crore, or roughly 31.7 times FY26 annualised earnings, which is justified given its brand strength and market leadership. However, investors should remember that this is a 100% Offer for Sale (OFS), so no fresh funds will be injected into the company.”
Based on these factors, Mehta Equities has recommended a ‘Subscribe for long-term’ rating, citing Orkla India’s well-established distribution network, export reach, and support from its global parent company as key strengths for long-term investors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)