Orkla India debuts at 3% premium on D-Street: Should you buy, sell or hold?

Orkla India stock opened at ₹751.5, a premium of 3 per cent on the BSE. The listing price was below the grey market estimates

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Orkla India IPO listing: Shares of Orkla India, parent company of packaged foods manufacturer MTR Foods, made a positive debut on Dalal Street. The company's shares listed at ₹750.1 per share on the NSE, reflecting a premium of around 2.75 per cent over the issue price of ₹730. Post-listing, the stock touched a low of ₹715, down nearly 5 per cent from the listing price.

 

On the BSE, the Orkla India stock opened at ₹751.5, a premium of 3 per cent.

 

The listing price of Orkla India was below the grey market estimates. Ahead of the listing, unlisted shares of Orkla India were trading at ₹796, commanding a grey market premium (GMP) of ₹66 or 9 per cent against the issue price, according to sources tracking unofficial markets.  

Orkla India: Should you buy, sell or hold?

Shivani Nyati, head of wealth at Swastika Investmart, says that investors who received allotments may consider booking partial profits after the decent debut, while holding the remaining allocation for the medium to long term, as the company benefits from increasing consumer preference toward branded packaged foods. "A stop-loss may be placed at ₹650," Nyati added.

 

According to Nyati, the IPO received strong subscription from investors, reflecting confidence in the consumer-staples story and the company’s established market leadership. The company's financials show steady revenue growth and improving profitability, supported by operational efficiencies, brand strength, and expanding distribution through modern retail, e-commerce, and HoReCa channels.

 

Prashanth Tapse, senior vice president for research at Mehta Equities, suggests alloted investors to hold the stock from a long-term perspective, while being mindful of inherent market risks. For non-allotted investors, Mehta Equities suggests a ‘Wait and Watch’ approach to evaluate any post-listing correction as a potential entry opportunity.

Orkla India IPO subscription rate

As per data from the National Stock Exchange (NSE), the Orkla India IPO received a robust response from investors, with overall subscriptions reaching 48.7 times. Investors placed bids for 779.66 million equity shares against the 15.99 million shares on offer. Qualified Institutional Buyers (QIBs) led the demand, oversubscribing their allotted quota by 117.63 times. The Non-Institutional Investors (NIIs) segment was subscribed 54.42 times, while the retail investors’ portion received 7.05 times more bids than the shares on offer.  ALSO READ | Here's how to check Lesnkart IPO Allotment status, latest GMP today

Orkla India IPO details:

Orkla India successfully raised ₹1,667.54 crore through its initial public offering, which comprised an offer for sale (OFS) of 22.8 million equity shares. The IPO was offered in the price band of ₹695 to ₹730 per share, with a minimum application lot of 20 shares. The issue was open for subscription from October 29 to October 31.

 

Kfin Technologies serves as the registrar for the public issue. ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company are the book-running lead managers.

 

According to the red herring prospectus (RHP), the company will not receive any new funds from the offering; instead, existing shareholders are selling their stakes through the issue.