Orkla India IPO subscribed 2.70 times on Day 2; GMG signals...

New Delhi: The initial public offer of Orkla India Ltd, which owns spices and condiments brands MTR and Eastern, got fully subscribed on the second day of bidding on Thursday.

Orkla India IPO subscription on Day 2

The IPO received bids for 4,32,53,940 shares against 1,59,99,104 shares on offer, translating into 2.70 times subscription, according to NSE data.

Among investor categories, non-institutional investors part fetched 7.59 times subscription, while the quota for Retail Individual Investors (RIIs) got subscribed 2.11 times. The category for Qualified Institutional Buyers (QIBs) received 6 per cent subscription.

Orkla India IPO GMP today

Orkla India IPO’s grey market premium (GMP) was Rs 67 on Tuesday, suggesting its shares were trading at that premium, 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 797 per share, about 9.18% 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 Friday.

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.