Orkla India IPO Day 2: Check GMP trend, subscription status, analyst views, and other key details before bidding

Core Insights - The Orkla India IPO has garnered significant interest, with 79% overall subscription on Day 1, particularly strong among Retail Individual Investors (RIIs) who subscribed to 90% of their reserved shares [1][14] - The grey market premium (GMP) for the IPO is Rs 68, suggesting a potential listing price of around Rs 798, indicating a 9.3% expected gain for investors at the issue price [4][14] - The IPO is a complete Offer for Sale (OFS) by Orkla ASA, with no new funds being raised, and is priced between Rs 695-730 per share [5][12] Company Overview - Orkla India, established in 1996, is a prominent player in the packaged foods and condiments sector, offering over 400 products including instant mixes, spices, and ready-to-eat meals [7][15] - The company holds a significant market share, with flagship brands MTR and Eastern capturing 31-42% in key South Indian states and an 18.6% share in India's overall convenience food segment [7][15] - Orkla India exports to over 40 countries and operates nine manufacturing facilities in India with a total production capacity of 182,000 tonnes per annum [8][15] Financial Performance - In FY25, Orkla India reported total income of Rs 2,455 crore and a net profit of Rs 256 crore, reflecting a 13% year-on-year growth [9][15] - The company maintains a strong EBITDA margin of 16.6% and a return on capital employed (ROCE) of 32.7%, indicating robust financial health [9][15] Analyst Insights - Analysts view the IPO as an opportunity to invest in a market-leading company with strong brand recognition and a diverse product portfolio [10][11] - The valuation at the upper price band of Rs 730 results in a market capitalization of approximately Rs 10,000 crore, equating to a P/E ratio of around 31.7 times FY26 annualized earnings, which is considered justified by its market position [12][14] - The growth strategy of Orkla India focuses on innovation, category diversification, and premiumisation, reinforcing its leadership in the packaged food segment [13][14]