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| Orkla India IPO Day 2 — Strong retail interest pushes total subscription to 2.70× amid GMP ₹68 premium in the grey market.(Representing AI image) |
Orkla India Ltd IPO — Day 2 Deep Dive: Subscription Surge, GMP Signals, and Should You Apply?
Table of Contents
- Introduction: Why Orkla India’s IPO is making headlines
- Company snapshot & industry backdrop
- IPO Structure & Key Details
- Day 1 and Day 2 Subscription Trends & GMP Analysis
- Valuation & Financial Performance
- Strengths, Risks & Strategic Outlook
- Analyst Views & Market Sentiment
- Decision Time: Apply or Wait?
- FAQ
- Conclusion
- References
1. Introduction: Why Orkla India’s IPO is making headlines
The upcoming Orkla India IPO has quickly become one of the most talked-about public issues in late 2025. Formerly part of MTR Foods, the company is set to make its stock market debut with a price band of ₹695–₹730 per equity share. The IPO will open for subscription from 29 October to 31 October 2025, and the listing is expected around 6 November 2025.
So, why is the Orkla India IPO creating such a buzz among investors and analysts alike? Several key factors are driving the excitement. To begin with, the issue is structured entirely as an Offer For Sale (OFS). This means that no new shares will be issued, and the company itself won’t receive any fresh capital. Instead, the IPO provides an exit opportunity for existing shareholders — a move that often signals confidence in the company’s financial stability and brand value.
Adding to the enthusiasm, the market’s early response has been strong. By the second day of bidding, the IPO was subscribed 2.70 times, highlighting robust retail and institutional interest. Moreover, the grey market premium (GMP) has hinted at solid listing gains, though experts advise caution given market volatility and short-term sentiment swings.
Orkla India’s core strength lies in its operations within India’s booming consumption economy — a space encompassing packaged foods, spices, and ready-to-eat products. These categories continue to enjoy long-term growth, fueled by urbanization, rising disposable incomes, and evolving consumer preferences toward convenience and quality.
As a result, the Orkla India IPO is being viewed as a unique opportunity to participate in India’s growing FMCG story. However, before jumping in, potential investors should weigh valuations, competitive positioning, and post-listing prospects carefully. In the following sections, we’ll break down all these aspects to help you decide whether you should apply for the Orkla India IPO.
2. Company snapshot & industry backdrop
Company Overview
Orkla India Ltd, a subsidiary of Norway-based Orkla ASA, stands as one of India’s prominent players in the fast-growing packaged food segment. The company is best known for its popular household brands such as MTR, Eastern, and Rasoi Magic, each enjoying strong consumer trust and recall.
With a diverse and multi-category portfolio, Orkla India operates across several key verticals — spices (pure and blended), ready-to-eat (RTE) meals, ready-to-cook (RTC) mixes, and breakfast solutions. This wide product range positions the company as a comprehensive food solutions provider catering to India’s evolving culinary preferences.
Traditionally, Orkla India has maintained a robust presence in South India, where its flagship brand MTR is a market leader. However, the company is now pursuing aggressive national and global expansion plans. By leveraging its strong brand equity, manufacturing capabilities, and distribution reach, Orkla India aims to capture a larger slice of India’s rapidly growing packaged food market.
Industry Context
The broader Indian packaged food industry presents a compelling growth story. According to Technopak, the market was valued at approximately ₹10,180 billion in FY2024, registering a healthy 10.8% CAGR since FY2019. Several structural drivers continue to fuel this growth — urbanization, rising disposable incomes, expanding modern retail and e-commerce penetration, and a clear shift in consumer behavior towards convenience-oriented and hygienically packaged foods.
In this dynamic environment, Orkla India is strategically positioned to benefit from the long-term growth of India’s consumption economy. However, the real test lies in the company’s ability to manage execution efficiency, maintain healthy margins, and stay ahead in an increasingly competitive FMCG landscape.
With these factors at play, Orkla India’s IPO comes at a time when investor interest in India’s food and FMCG story is at an all-time high.
3. IPO Structure & Key Details
The Orkla India IPO has been designed to attract a broad base of investors while offering existing shareholders a strategic exit. Here’s a detailed look at the structure, pricing, and other key highlights that define this much-anticipated public issue.
Issue Size and Price Band
The total issue size for the Orkla India IPO stands at approximately ₹1,667.54 crore (about ₹16.68 billion), consisting of around 2.28 crore equity shares. The price band has been fixed between ₹695 and ₹730 per share, positioning the issue within a premium valuation range. This pricing reflects the company’s strong brand equity, steady growth in the packaged food segment, and long-term market potential.
Lot Size and Minimum Investment
Retail investors can bid for a minimum lot size of 20 shares, which translates to a minimum investment of approximately ₹14,600 at the upper price band. This relatively accessible entry point is expected to drive high retail participation, especially given the company’s strong consumer-facing brands and visibility in the Indian FMCG space.
Subscription Window and Listing Timeline
The IPO will open for subscription from 29 October to 31 October 2025, with the tentative listing date set for 6 November 2025 on both the BSE and NSE. Given the initial subscription momentum observed in early bids, the issue is expected to witness robust demand from retail and institutional investors alike.
Offer For Sale (OFS) Structure
Importantly, this IPO is entirely an Offer For Sale (OFS). This means that no new shares will be issued, and Orkla India Ltd will not receive any direct proceeds from the offering. Instead, the selling shareholders — Orkla Asia Pacific Pte Ltd, Navas Meeran, and Feroz Meeran — will offload a portion of their holdings.
Investor Reservation & Allocation
As per SEBI norms, up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Investors. Additionally, an employee quota of approximately 30,000 shares has been set aside, often offered at a small discount to the issue price.
What It Means for Investors
This balanced IPO structure, coupled with strong brand fundamentals and favorable industry dynamics, makes Orkla India’s IPO an attractive opportunity for investors looking to participate in India’s expanding packaged food and FMCG growth story.
4. Day 1 and Day 2 Subscription Trends & GMP Analysis
The Orkla India IPO has been one of the most closely watched public issues of the season, with investors tracking its subscription data and Grey Market Premium (GMP) movements closely. The IPO, open from 29 October to 31 October 2025, has seen a steady build-up in demand across retail and non-institutional categories. Let’s take a closer look at the numbers and what they suggest about investor sentiment.
Subscription Status: Day 1 Snapshot
On Day 1 (29 October 2025), the Orkla India IPO was approximately 79% subscribed by late afternoon, showing a promising start but not an overwhelming one. The retail investor category led the charge, with around 90% of its quota filled, demonstrating strong interest from small investors who are familiar with the company’s household brands like MTR and Eastern.
The Non-Institutional Investor (NII) segment, which typically includes high-net-worth individuals (HNIs), saw about 1.53× subscription, reflecting early speculative enthusiasm. Meanwhile, Qualified Institutional Buyers (QIBs)—often seen as a barometer of long-term confidence—showed modest participation, with only 2% of their quota subscribed by the end of Day 1.
Interestingly, the employee reservation portion witnessed significant traction, being subscribed 3.27×, suggesting confidence among insiders and staff who understand the company’s fundamentals best.
Day 2 Subscription Update: Momentum Picks Up
By Day 2 (30 October 2025), the IPO gained considerable traction. By 5:00 PM IST, total bids reached approximately 432.54 lakh shares, against 159.99 lakh shares on offer, translating to an overall subscription of 2.70×.
Here’s the category-wise breakdown for Day 2:
- Retail investors: ~2.11× subscribed
- Non-Institutional Investors (NII): ~7.59× subscribed
- Qualified Institutional Buyers (QIB): still only ~6% of their quota filled
- Employee segment: ~6.20× subscribed
This pattern suggests growing momentum, especially among NIIs and retail investors, while QIBs may be waiting for the final day before placing their large bids — a common trend in recent IPOs.
What the Numbers Indicate
A 2.7× overall subscription after Day 2 indicates healthy demand, though not in the “runaway oversubscription” category seen in some hot IPOs that cross 10× or more.
Key insights:
- Retail participation has been robust, showcasing trust in Orkla India’s brand and business model.
- NII enthusiasm suggests a fair amount of short-term speculative interest, likely driven by the hope of listing gains.
- Weak QIB participation (around 6%) could hint at institutional caution, possibly due to the entirely Offer For Sale (OFS) nature of the IPO, which means the company won’t receive new funds for expansion or debt reduction.
While overall sentiment is positive, the muted QIB response might limit the IPO’s potential for a massive oversubscription on the final day.
Grey Market Premium (GMP) Trends
The Grey Market Premium (GMP)—an unofficial but popular pre-listing indicator—has been showing moderate strength.
- Before the subscription opened, the GMP hovered around ₹84, which translates to an 11.5% premium over the upper issue price of ₹730.
- On Day 2, reports suggested the GMP had cooled slightly to ₹68, implying a ~9.3% premium.
- According to Moneycontrol, the average GMP remained around 10%, suggesting continued optimism.
GMP Interpretation: A Balanced Outlook
A positive GMP of 9–11% indicates that investors are expecting listing gains and maintain a generally upbeat outlook on the IPO. However, experts caution that GMP movements are unofficial and speculative — they don’t always translate directly into actual listing performance.
The current situation — where QIB participation is low but GMP remains positive — suggests that retail and short-term speculative investors are driving the momentum rather than deep-pocketed institutional buyers.
5. Valuation & Financial Performance
The Orkla India IPO draws investor attention not just because of its strong brand portfolio but also due to its consistent financial performance. While growth has been steady rather than spectacular, the company’s profitability metrics and efficient capital usage have improved year over year. Let’s examine the numbers and what they imply about Orkla India’s valuation.
Financial Snapshot (as per RHP / Disclosures)
According to the company’s Red Herring Prospectus (RHP), Orkla India Ltd reported moderate top-line growth but a healthy improvement in profitability for FY25.
- Revenue (Total Income): The company’s total income for FY25 stood at ₹2,394.7 crore, up approximately 3% year-on-year from FY24. While this reflects modest growth, it underscores resilience in a competitive packaged foods market.
- Profit After Tax (PAT): Net profit rose by around 12.9%, reaching ₹255.69 crore compared to ₹226.33 crore in FY24. This improvement highlights effective cost management, better operational efficiency, and steady demand for its core brands like MTR, Eastern, and Rasoi Magic.
- Return on Capital Employed (ROCE): One of the standout metrics is ROCE, which improved to ~32.7% in FY25, indicating strong returns on invested capital and efficient resource utilization.
Overall, Orkla India appears to be focusing on profitability and efficiency rather than aggressive expansion — a sensible approach for a mature FMCG player.
Valuation Metrics
At the upper IPO price band of ₹730 per share, Orkla India’s market capitalization works out to approximately ₹10,000 crore, assuming no new capital infusion. Based on projections, the issue values the company at a price-to-earnings (P/E) multiple of around 31.7× (FY26E annualized).
While this valuation may seem on the higher side, it reflects investor willingness to pay a premium for well-established FMCG brands with consistent profitability and strong brand recall.
Comparative Perspective
A P/E ratio of around 32× may not appear cheap, especially for a company growing revenues at just 3% annually. However, several factors justify the valuation premium:
- Strong brand portfolio with deep consumer trust.
- Improving margins and ROCE, signaling better profitability quality.
- Favorable sector tailwinds in the convenience and packaged food segments.
That said, since the IPO is a pure Offer For Sale (OFS), investors should note that no fresh funds are being infused into the business for expansion. The proceeds will go to existing shareholders, not towards growth initiatives.
In short, Orkla India’s valuation leans toward the premium side — supported by brand strength and profitability rather than rapid top-line expansion. Investors may see it as a stable FMCG play with moderate growth potential and strong fundamentals rather than a high-growth opportunity.
6. Strengths, Risks & Strategic Outlook
The Orkla India IPO arrives at a time when investors are seeking exposure to India’s expanding packaged food and FMCG segments. The company’s well-known brands, stable financials, and strong parentage position it favorably. However, moderate growth and regional concentration highlight key challenges that investors must consider before applying.
Strengths
1. Strong Brands & Heritage
Orkla India’s biggest advantage lies in its trusted legacy brands such as MTR, Eastern, and Rasoi Magic. These are household names, particularly in South India, where the company enjoys deep consumer loyalty. As per market analysis, Orkla India commands around 19% of the national market share in convenience foods, making it one of the category leaders in ready-to-cook (RTC) and spice segments.
2. Debt-Free, Clean Balance Sheet
The company operates with a zero-debt structure, providing it with significant financial flexibility. A healthy balance sheet instills investor confidence and enables the company to fund expansion through internal accruals rather than debt financing.
3. Strong Industry Tailwinds
India’s consumption economy continues to grow rapidly, fueled by rising incomes, urbanization, and a growing appetite for convenience and packaged foods. This macro trend provides Orkla India with a long-term runway for growth.
4. Global Parentage
Being a subsidiary of Norway-based Orkla ASA, the company benefits from international best practices, strong corporate governance, and operational expertise. This global backing adds credibility and potential for cross-border synergies.
Risks
1. Low Growth Rate
Revenue growth of just ~3% in FY25 suggests that expansion has been modest. If this trend persists, it could disappoint investors expecting faster topline growth.
2. Regional Concentration
A large share of Orkla India’s revenue still comes from South India, limiting diversification. Expanding nationally will require significant brand-building investments and time.
3. Margin Sensitivity & Commodity Risks
The company’s profitability is susceptible to raw material price fluctuations and supply chain pressures — common challenges for FMCG players.
4. No Fresh Capital Raise
As the IPO is a pure Offer For Sale (OFS), the company won’t receive new funds for expansion. Future performance will depend entirely on organic growth and operational efficiency.
5. Institutional Demand Concerns
Weak QIB interest during the subscription phase suggests some hesitation among large investors, possibly due to valuation concerns.
Strategic Outlook
Looking ahead, Orkla India aims to expand beyond its southern stronghold, targeting North Indian and rural markets. The company is also focusing on innovation in ready-to-eat (RTE) and RTC categories, exports to Indian-diaspora markets, and margin improvement through efficiency gains and GST rationalization, especially in the spices segment.
Sustained brand investment, disciplined cost control, and strategic diversification will be critical for Orkla India to justify its current premium valuation and deliver steady post-listing performance.
7. Analyst Views & Market Sentiment
As the Orkla India IPO progresses through its subscription phase, analysts and brokerages have shared a range of views — many expressing cautious optimism. While the company’s strong brands and solid fundamentals are acknowledged, concerns around modest growth, regional dependence, and limited institutional participation are also shaping investor sentiment.
Brokerage Opinions: Balanced but Guarded
According to reports in Mint, several brokerages have adopted a “Neutral” stance on the Orkla India IPO from a long-term perspective. Analysts note that the recent GST reduction on food products could support the company’s profit margins in the coming quarters. However, they also flag key risks such as regional concentration (heavy reliance on South India) and raw material volatility, both of which could impact earnings stability.
On valuation, some analysts highlight that while Orkla’s P/E ratio of ~32× may appear expensive on the surface, it is relatively reasonable when compared to certain listed peers in the FMCG sector that trade at significantly higher multiples — in some cases, around 90× earnings. This suggests that Orkla India’s pricing, though premium, is still within an acceptable range for a branded food business with steady profitability.
Market Sentiment: Retail Enthusiasm, Institutional Caution
Market sentiment so far reflects healthy retail interest but limited institutional aggression. The IPO’s strong Day 2 subscription (2.7× overall) and a positive Grey Market Premium (GMP) of around 9–11% indicate that investors expect moderate listing gains. Retail and Non-Institutional Investors (NIIs) have shown solid participation, while Qualified Institutional Buyers (QIBs) appear to be adopting a wait-and-watch approach.
This divergence likely stems from valuation caution and the fact that the IPO is a pure Offer For Sale (OFS), which means the company isn’t raising new funds for expansion. Institutions often prefer IPOs that channel proceeds into growth or debt reduction, rather than shareholder exits.
Analyst Takeaway: Focus on Fundamentals, Not Just Listing Gains
Overall, analysts recommend a measured approach. The Orkla India IPO offers exposure to India’s growing packaged food and convenience segment, supported by strong brands and global parentage. However, experts caution investors not to chase short-term listing pops, but instead assess whether the company can deliver consistent revenue growth, margin expansion, and wider geographic penetration over time.
8. Decision Time: Apply or Wait?
With strong brand equity, a solid balance sheet, and moderate financial growth, the Orkla India IPO presents both opportunities and caveats for investors. Whether to apply now or wait for post-listing clarity depends largely on your investment horizon and risk appetite. Here’s a structured breakdown to help you make an informed decision.
If You Apply (for Listing Gains / Short-Term View)
Pros:
- Positive GMP Trend: The Grey Market Premium (GMP) hovering around +9–11% indicates a fair chance of listing gains, provided market sentiment remains upbeat.
- Strong Brand Portfolio: With trusted names like MTR, Eastern, and Rasoi Magic, Orkla India benefits from deep consumer trust — a big advantage in India’s competitive packaged food market.
- Sector Tailwinds: The company operates in India’s booming consumption and convenience foods segment, which enjoys steady demand regardless of short-term market fluctuations.
- Affordable Entry Point: The minimum investment of approximately ₹14,600 (one lot at the upper band) makes it accessible for retail investors seeking short-term opportunities.
Cons:
- Offer For Sale (OFS) Only: Since the IPO raises no new funds, growth will depend on existing resources rather than fresh capital infusion.
- Moderate Valuation: At a P/E of ~32×, the issue isn’t cheap, especially with revenue growth around 3%.
- Institutional Hesitation: Weak QIB participation so far suggests that big investors may be waiting for better clarity or lower valuations. If this persists, listing gains could narrow or even turn negative in case of market weakness.
If You Wait (Post-Listing or Skip for Now)
Waiting might be a better strategy if you’re focused on long-term fundamentals rather than quick gains.
- The stock could offer a better entry point post-listing, especially if enthusiasm cools after debut.
- Long-term investors should monitor how the company executes on expansion into North India, rural markets, and exports before committing.
- If you’re seeking faster growth or stronger institutional backing, there may be other IPOs or listed FMCG names that offer higher scalability.
My View (Opinion)
Overall, the Orkla India IPO appears moderately attractive. It offers a blend of premium brands, steady margins, and sector strength, but with low growth and no fresh capital, expectations should remain realistic.
👉 Apply if you’re targeting short-term listing gains and can handle some risk.
👉 Wait if your focus is long-term business growth and valuation comfort.
In essence, a cautious “Apply” for short-term investors, and a “Wait and Watch” for long-term ones.
9. FAQ
Q1: What is GMP and how should I treat it?
Grey Market Premium (GMP) indicates the premium at which shares of an IPO are trading unofficially before listing. It’s a sentiment indicator but not guaranteed or endorsed by the regulator. Use it cautiously.
Q2: Since this is OFS only, why should I invest?
Even if the company doesn’t raise new capital, the public listing enables shareholder liquidity, price discovery and potentially raises profile. Investors still buy based on expected listing gains, brand strength and business potential.
Q3: What lot size and minimum investment required?
Lot size is 20 shares. At upper band ₹ 730, minimum investment ~₹ 14,600.
Q4: When will the listing take place?
Tentatively 6 November 2025 for listing on BSE & NSE.
Q5: Are there risks I should worry about?
Yes — including modest revenue growth, high regional concentration, raw-material inflation, competitive pressures, and the fact that there’s no fresh capital infusion via the IPO.
10. Conclusion
The Orkla India IPO presents a compelling mix of positives: strong legacy brands, attractive sector tailwinds, decent subscription momentum and market enthusiasm as evidenced by GMP. On the flip side, the modest growth numbers, regional concentration, and OFS structure limit some upside and increase risk.
For investors looking for a short-term listing gain, the IPO is reasonably placed — participation makes sense if you understand and accept the risk. For those looking for long-term business growth, you might want to monitor how Orkla India executes its expansion strategy post-listing before taking a big position.
As always, ensure your investment decision aligns with your risk profile, time-horizon and portfolio strategy. The official red herring prospectus (RHP) and your broker’s detailed research should be consulted before subscribing.
11. References
- “Orkla India IPO: Price band set at ₹695-730 per share; check key dates, issue details” — LiveMint.
- “Orkla India IPO Day 2: Issue subscribed 79% so far. Check GMP, subscription status, review. Apply or not?” — LiveMint.
- “Orkla India IPO subscribed 2.70 times – ICICI Direct.”
- “Orkla India IPO: From dates to key risks — Here are 10 key things from the RHP that investors should know.” — LiveMint.
- “Orkla India IPO: Leading food brand, hidden risks; what you should know.” — Business-Standard.
- “Orkla India IPO Details; Lot size, etc.” — Bajaj Finserv.
- “Orkla India IPO: SWOT Analysis & Key Insights.” — HDFC Sky.
- “Orkla India IPO business, strengths, risks and more – YouTube.”
- “Orkla India IPO to Open Oct 29 – Check Issue Size & Key …” — Groww.
- “Orkla India IPO Files for IPO, no fresh issue.” — Times of India (News).
.⚠️ Disclaimer (MarketPlus)
The information provided on MarketPlus is for educational and informational purposes only and should not be considered as financial, investment, or trading advice. All data and analysis—including IPO details, subscription status, Grey Market Premium (GMP), and expert reviews—are based on publicly available sources such as SEBI filings, company prospectuses, stock exchanges (BSE/NSE), and reputed financial publications (e.g., Moneycontrol, LiveMint, Economic Times).
MarketPlus and its authors do not guarantee the accuracy, completeness, or reliability of the information presented. MarketPlus shall not be held liable for any losses or damages arising from investment decisions made based on this content. Readers are strongly advised to consult a certified financial advisor or SEBI-registered professional before making any investment decisions.
MarketPlus does not endorse or promote any specific IPO, stock, or financial product. Market conditions and Grey Market Premiums (GMPs) are subject to change and should not be treated as guaranteed indicators of listing performance.
Investing in equities and IPOs involves market risks. Read all documents carefully before investing.
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