Orkla India shares to list today. GMP suggests healthy debut ahead

Core Viewpoint - The IPO of Orkla India, which was open from October 29 to October 31, received a robust response, being subscribed 48.7 times overall, driven by strong institutional demand despite being a pure offer for sale (OFS) [1][8]. Subscription Details - The Qualified Institutional Buyers (QIB) portion was subscribed 117.6 times, Non-Institutional Investors (NII) 54.4 times, and retail investors 7 times, indicating broad-based participation [1][8]. Investor Sentiment - Investor enthusiasm was attributed to Orkla's strong brand equity, market leadership in packaged foods and spices, and backing from the Norwegian multinational Orkla ASA [2][8]. - Analysts noted that the higher-than-expected subscription occurred despite muted market sentiment, reflecting strong investor interest and confidence in the company's fundamentals [2][8]. Institutional Participation - Orkla India attracted significant institutional participation in its Rs 499.6 crore anchor book, with subscriptions from top domestic fund houses and major foreign sovereign investors [5][8]. Market Trends - Institutions are betting on the company's consistent financial performance and the expanding packaged food market in India, which benefits from rising disposable incomes and urban consumption trends [6][8]. Financial Performance - For FY25, Orkla India reported revenues of Rs 2,455 crore, a 3% year-on-year increase, and a profit after tax of Rs 256 crore, up 13% [7][9]. - The company has healthy profitability with EBITDA margins of 16.6% and a Return on Capital Employed (ROCE) of 32.7% [7][9]. - At the upper price band, the IPO valued the company at 31.7 times FY25 earnings [7][9]. Future Outlook - Analysts suggest that post-listing performance will depend on the company's ability to sustain double-digit earnings growth and expand its distribution network beyond southern India [7][9].