Orkla India, the parent company of packaged foods brand MTR Foods, is set to open its initial public offering (IPO) for subscription on October 29. After its three-day subscription period, the issue will close on October 31.
Let’s take a look at the key factors to watch out for this upcoming ipo –
Orkla India IPO: Issue size and type
The Orkla IPO is a book-built offer for sale (OFS) of Rs 1,667.54 crore, comprising 2.28 crore shares. The company will not receive any proceeds from the sale. The funds will go to the selling shareholders, including Orkla Asia Pacific, Navas Meeran, and Feroz Meeran.
Orkla India IPO: Price band and lot size
The IPO price band is set between Rs 695-730 per share. Each application must be for a lot of 20 shares, requiring a minimum investment of Rs 14,600 at the upper price.
For non-institutional investors, the lot size is 280 shares (Rs 2,04,400), while high net-worth investors and QIBs can apply for 1,380 shares (Rs 10,07,400).
Orkla India IPO: GMP update
Ahead of the opening of the issue, the shares of Orkla in the unofficial market are trading at a premium of Rs 80. This indicates an estimated listing price of Rs 810, which is nearly 11% above the issue upper price band.
However, it is important to note that GMP is not the actual listing price and fluctuates based on market sentiments.
Orkla India IPO: Important dates
The anchor investor period begins on October 28. The IPO subscription window opens on October 29 and closes on October 31. The basis of allotment is expected on November 5. The stock is tentatively scheduled to list on NSE and BSE on November 6.
Orkla India IPO: Lead managers and registrar of the issue
The IPO is managed by ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company.
Kfin Technologies is appointed as the registrar for the issue.
Orkla India IPO: Shareholder reservation
The IPO’s reservation structure follows – up to 50% for QIBs, a minimum of 35% for retail investors, and at least 15% for non-institutional investors (NIIs).
Orkla India IPO: Objective
The proceeds from the IPO will go entirely to the selling shareholders, after deduction of offer-related expenses and taxes.
About Orkla India
The company was incorporated in 1996. Orkla India is a multi-category food company offering a range of products across breakfast, snacks, meals, beverages, and desserts. Its key product categories include spices and convenience foods, and it owns heritage brands such as MTR Foods, Eastern Condiments, and Rasoi Magic.
The company operates nine manufacturing plants in India with a total capacity of 1,82,270 TPA. Orkla India has a strong presence in Karnataka, Kerala, Andhra Pradesh, and Telangana, and exports to 42 countries, including the US, Canada, and GCC nations.