The initial public offering (IPO) of Orkla India Ltd — the parent of brands such as MTR Foods, Eastern Condiments and Rasoi Magic — opened for public subscription on 29 October 2025 and is scheduled to close on 31 October 2025. The offer size is ₹1,667.54 crore and is being executed entirely as an Offer for Sale (OFS) — meaning no fresh equity is being issue.

Here is a detailed update on the IPO’s key metrics — grey-market premium (GMP), subscription status, valuation and what this means for Indian investors.

Key IPO facts

Price band: ₹695 to ₹730 per share.
Lot size / minimum investment: 20 shares for retail investors (at upper band ₹730 → minimum ~ ₹14,600
Issue structure: Entirely Offer for Sale of ~2.28 crore equity shares by promoters and other shareholders. Company will not receive any proceeds.
Listing date (tentative): Shares expected to list on NSE and BSE around 6 November 2025.

Subscription status (so far)

Day 1 (29 Oct): At end of day, issue was ~0.78–0.79x subscribed — bids for ~1,25,56,940 shares vs ~1,59,99,104 shares on offer.
Day 2 (30 Oct): Subscription picked up; the issue had reached ~2.12–2.70x by Day 2.
Segment-wise booking day 1 (according to Mint):
- Retail: ~90%
- Non-Institutional Investors (NII): ~1.53x
- Qualified Institutional Buyers (QIB): ~2% only.

This suggests strong demand from retail and NII investors but relatively weak interest from QIBs at this stage.

Grey Market Premium (GMP) and listing expectations

Grey-market trackers show premiums in the range of ₹63 to ₹108 per share above the upper price band, during the first day of bidding. For instance, one tracker reported GMP of ~₹77 → estimating a listing price around ₹807.
On Day 2, GMP appears to have eased to ~₹68 (which suggests a listing estimate ~₹798 if IPO price is ₹730).
While GMP offers a “sentiment snapshot,” it is unofficial and not a guarantee of listing gains. Investors should treat it cautiously.

Why is this IPO significant?

Strong brand portfolio & market presence: Orkla India leverages iconic brands (MTR, Eastern, Rasoi Magic) across ready-to-eat, convenience foods and spices. The company commands high market share in key South Indian states.
Sectoral tailwinds: The packaged food market in India is growing rapidly, aided by urbanisation, changing consumption patterns and increased demand for convenience. Orkla India is positioned to benefit.
Fully an OFS: Since no fresh capital is being raised for the company, the market may focus on the “listing gain” perspective rather than growth-capital utilisation. Some analysts note this as a consideration for long-term investors.

Things Indian investors should watch & consider

Valuation and P/E metrics: At upper band ₹730, the company’s P/E works out ~31.5–31.7x on FY26 annualised earnings, per analysts. This is moderate but not extremely cheap, given growth expectations.
Segment interest: With strong retail subscription but weak QIB early participation, investor appetite is skewed; QIB appetite often signals long-term institutional conviction.
GMP trend moderation: Although GMP is positive, the easing trend signals some moderation in listing-expectation enthusiasm.
Business risk factors: Investors should assess competition in the packed food space, raw-material price volatility, regional dependence (strong in South India) and the fact that the company is not raising new capital.
Listing performance vs. long-term investment: This IPO may appeal for short-term listing gains (assuming positive debut) but long-term investors should evaluate fundamentals, growth strategy, and competitive positioning.

Final word

The Orkla India IPO represents a major opportunity for Indian investors to participate in a business backed by strong brands and favourable sectoral tailwinds. Early subscription data and GMP indicate positive market sentiment. However, the fact that the offer is purely an OFS, combined with higher valuations and muted institutional (QIB) participation, suggests careful due-diligence is essential.

For those looking to apply, viewing this IPO as part of a long-term investing strategy (rather than just listing gain speculation) may be prudent. Monitoring subscription rates, GMP shifts and post-listing performance will be key in the coming days.

Also read:Amazon Layoffs: Up to 30,000 Jobs May Be Cut — Implications for India

Last Updated on: Friday, October 31, 2025 10:04 pm by Pioneer Today Team | Published by: Pioneer Today Team on Friday, October 31, 2025 10:03 pm | News Categories: Trending, Latest