Orkla India debut: Shares start trading slightly above IPO price
Orkla India shares made a modest debut on the stock market, listing at a nearly 3 percent premium over the initial public offering (IPO) price on the National Stock Exchange (NSE).
The Rs 1,667-crore IPO, which was subscribed 48.73 times between October 29–31, saw shares listed at Rs 750.10 each on the NSE, reflecting a 2.75 percent premium over the issue price band of Rs 695–730 per share, News.Az reports, citing foreign media.
On the Bombay Stock Exchange (BSE), Orkla India shares opened at Rs 751.50 apiece, a premium of 2.95 percent, giving the company a post-listing market capitalization of Rs 10,294.74 crore. Earlier, the company had raised around Rs 500 crore from anchor investors.
The debut listing fell short of grey market expectations, which had anticipated gains of around 9 percent.
Prashanth Tapse, Senior Vice-President (Research) at Mehta Equities, said, "Orkla India, backed by strong brands such as MTR and Eastern, presents a compelling long-term structural growth story.”
Tapse further noted that the robust subscription numbers reflect investor confidence in the company’s fundamentals and its ability to benefit from rising demand for convenience foods in key southern markets. "Allotted investors are advised to hold the stock from a long-term investment perspective, while non-allotted investors may adopt a wait-and-watch approach for a potential post-listing correction," he said.
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.
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