Orkla India IPO receives 78% subscription on Day 1; check latest GMP

New Delhi: The initial public offer of Orkla India Ltd, which owns spices and condiments brands MTR and Eastern, received 78 per cent subscription on the first day of bidding on Wednesday.

Orkla India IPO subscription on Day 1

The company's IPO received bids for 1,25,56,940 shares against 1,59,99,104 shares on offer, as per NSE data.

The portion for non-institutional investors attracted 1.53 times subscription, while the category for Retail Individual Investors (RIIs) received 90 per cent subscription. The quota meant for Qualified Institutional Buyers (QIBs) got subscribed 2 per cent.

Orkla India IPO GMP today

Orkla India IPO’s grey market premium (GMP) stood at Rs 64, indicating that its shares were trading at a premium of Rs 64 in the grey market on Tuesday, according to investorgain.com.

Based on the upper end of the IPO price band and the prevailing premium, Orkla India’s estimated listing price is around Rs 794 per share, about 8.77% higher than the issue price of Rs 730.

The grey market premium (GMP) reflects investors’ willingness to pay more than the official issue price ahead of the stock’s market debut.

Orkla India on Tuesday said it has raised around Rs 500 crore from anchor investors.

The company's Rs 1,667 crore initial public offering (IPO) will conclude on October 31.

It has fixed a price band of Rs 695 to Rs 730 per share, aiming for a valuation of around Rs 10,000 crore at the upper end.

Orkla India IPO GMP objective

The company's IPO is a complete offer for sale (OFS) of 2.28 crore equity shares by the promoter and other shareholders, with no fresh issue component.

Under the OFS, promoter Orkla Asia Pacific Pte and shareholders -- Navas Meeran and Feroz Meeran -- are offloading shares.

At present, promoters -- Orkla Asia Pacific Pte. Ltd and Norwegian industrial investment company Orkla ASA -- hold 90 per cent stake, while Navas Meeran and Feroz Meeran own 5 per cent stake each in the company.

Since it is an OFS, the company will not receive any proceeds from the IPO, and the entire money will go to the selling shareholders.

About Orkla India

Orkla India, formerly known as MTR Foods, is a multi-category Indian food company. It manufactures products as spices, ready-to-eat, sweets and breakfast mixes, under prominent brands such as MTR, Rasoi Magic, and Eastern.

The company sells its products under the brands MTR and Eastern.

Orkla India will make its debut on the stock exchanges on November 6.