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].

Core Insights - Orkla India's IPO is priced at Rs 730 per share, involving an offer for sale of 2.28 crore shares, with shares credited on November 4 and listing on BSE and NSE on November 6 [1][7] - The grey market premium (GMP) is approximately 13%, indicating a potential listing gain of nearly Rs 95 per share [1][7] - The IPO has garnered strong institutional interest, raising Rs 500 crore from prominent investors prior to the public issue [2][7] Company Overview - Orkla India, a subsidiary of Norwegian parent Orkla ASA, is a leading packaged food company in India, operating nine manufacturing facilities and offering over 400 products [7][9] - The company is well-known for its popular food brands, including MTR Foods, Eastern Condiments, and Rasoi Magic, with a significant presence in South India and exports to 42 countries [2][7] IPO Details - The IPO was open for subscription from October 29 to October 31, achieving an overall subscription rate of 48.74 times, with QIB portion subscribed 117.6 times, NII 54.4 times, and retail 7.06 times [8][9] - The IPO is entirely an offer for sale by existing promoters, reducing their stake from 90.01% to 75% post-listing [7][9] - Analysts anticipate a stable-to-positive debut for the stock, contingent on broader market sentiment on the listing day [7][9]

Company Overview - Orkla India is a leading packaged food and condiments company in India, incorporated in 1996, with a diverse portfolio of over 400 product lines including instant mixes, spices, ready-to-eat meals, snacks, and beverages [9][10] - The company operates nine manufacturing facilities in India with an installed capacity of 182,000 tonnes per annum and has a strong distribution network supported by 834 distributors and nearly 1,900 sub-distributors [6][9] Financial Performance - For FY25, Orkla India reported a total income of Rs 2,455 crore and a net profit of Rs 256 crore, reflecting a year-on-year increase of 13% [7][9] - The company's EBITDA margin was 16.6%, and the return on capital employed (ROCE) was 32.7%, indicating a robust financial position [7][9] IPO Details - The IPO is priced between Rs 695 to Rs 730 per share, with a minimum application size of 20 shares, requiring an investment of Rs 14,600 for retail investors [1][9] - The IPO consists entirely of an offer for sale (OFS) by its Norwegian parent Orkla ASA and affiliated entities, with no fresh issue component [9][10] - The company has allocated up to 50% of the issue for qualified institutional buyers, at least 35% for retail investors, and 15% for non-institutional investors [1][9] Market Sentiment - The stock is currently commanding a grey market premium (GMP) of around 12%, suggesting potential listing prices between Rs 810 and Rs 820 if current sentiment persists [2][9] - The listing is scheduled for November 6, 2025, on both the BSE and NSE, with ICICI Securities as the book-running lead manager [2][9] Analyst Insights - Analysts express cautious optimism regarding the IPO, highlighting strong brand leadership and stable margins, while noting the absence of fresh capital as a limitation [8][10] - At the upper price band of Rs 730, the company is valued at a market cap of Rs 10,000 crore, translating to approximately 31.7 times FY26 annualized earnings, which is considered reasonable given its brand strength [8][10] - Mehta Equities has rated the issue as "Subscribe for long-term," emphasizing Orkla India's established distribution network, export presence, and backing from its global parent as key positives [8][10]

Company Overview - Orkla India is a significant player in the Indian packaged foods market, owning brands such as MTR Foods, Eastern Condiments, and Rasoi Magic [7] - The company offers a diverse product portfolio that includes ready mixes, spices, beverages, and ready-to-eat meals [7] - Orkla India operates nine manufacturing plants in India and has contract manufacturing operations in the UAE, Thailand, and Malaysia, selling over 2.3 million units daily across 28 states and 6 union territories, and exporting to 42 countries [8] Financial Performance - For the fiscal year ending March 2025, Orkla India reported revenue of Rs 2,455 crore, a 3% year-on-year increase [9] - The company's EBITDA was Rs 396 crore, reflecting a margin of 16.6%, while profit after tax (PAT) grew 13% year-on-year to Rs 256 crore, resulting in a PAT margin of 10.7% [9] - As of March 2025, Orkla India had a negligible debt level of Rs 2 crore, indicating it is virtually debt-free, with a return on capital employed (ROCE) of 32.7% and return on net worth (RoNW) of 13.8% [10] IPO Details - Orkla India's IPO is valued at Rs 1,667 crore and is set to open for public subscription on October 29, 2025, with a price band between Rs 695 and Rs 730 per share [11] - The offering consists of 2.28 crore equity shares, and the minimum bid size for retail investors is 20 shares, translating to a minimum investment of Rs 14,600 at the upper end of the price band [4][11] - The IPO is a pure Offer for Sale (OFS), meaning all proceeds will go to selling shareholders, primarily the promoter entities, allowing them to partially monetize their holdings while maintaining the company's capital structure [6][11] Market Outlook - Industry experts view the IPO positively, citing factors such as rising urbanization, increasing disposable incomes, and shifting consumer preferences towards branded packaged foods as major growth drivers [10][11] - Orkla India's focus on regional brands, product innovation, and strong distribution network positions it well to capitalize on the long-term expansion of the sector [10]

Company Overview - Orkla India is launching an initial public offering (IPO) of 2.28 crore equity shares, totaling Rs 1,667.54 crore, with no fresh capital being raised, as proceeds will go entirely to selling shareholders, mainly Orkla ASA and its affiliates [6][12] - The IPO is priced in the range of Rs 695–730 per share, requiring a minimum investment of Rs 14,600 for retail investors [6][12] - The shares are expected to be listed on both NSE and BSE on November 6, 2025 [2][12] Business Snapshot - Orkla India owns well-known consumer brands such as MTR Foods, Eastern Condiments, and Rasoi Magic, making it a significant player in the Indian packaged foods market [7][12] - The company operates nine manufacturing facilities in India and utilizes contract manufacturing in the UAE, Thailand, and Malaysia, selling over 2.3 million units daily across 28 states and 6 union territories, with exports to 42 countries [7][8][12] - Orkla is a category leader in southern India and is expanding its presence nationally, supported by a distribution network of 834 distributors and 1,888 sub-distributors [8][12] Financial Highlights - For FY25, Orkla India reported revenue of Rs 2,455 crore, a 3% year-on-year increase, with profit after tax (PAT) rising 13% YoY to Rs 256 crore [9][12] - The company's EBITDA was Rs 396 crore, reflecting healthy margins of 16.6%, and the PAT margin stood at 10.7%, indicating strong operational efficiency [9][12] Debt and Valuation - As of March 2025, Orkla India had negligible debt of Rs 2 crore, making it virtually debt-free, with a return on capital employed (ROCE) of 32.7% and return on net worth (RoNW) of 13.8% [10][12] - At the top end of the price band, the IPO values Orkla India at a post-issue P/E of 31.7x and a market capitalization of around Rs 10,000 crore, comparable to FMCG peers like Marico and Tata Consumer [11][12] Growth Drivers - Analysts highlight significant long-term potential for Orkla India as demand for packaged foods in India grows, driven by urbanization and convenience-oriented lifestyles [11][12] - The company's focus on value-added regional brands and category innovation is expected to support sustained growth in the coming years [11][12]

Group 1: Orkla India IPO - Orkla India is set to launch an IPO worth Rs 1,668 crore, with shares listing on both BSE and NSE [7][8] - The IPO is expected to test investor sentiment towards consumer staples following a series of tech and industrial offerings [7][8] - The grey market premium (GMP) for Orkla India is currently around 8–10%, indicating mild listing optimism [7][8] Group 2: Game Changers Texfab IPO - Game Changers Texfab will open its SME IPO worth Rs 54.84 crore on October 28, closing on October 30, with a price band of Rs 96 to Rs 102 per share [4][8] - The company is involved in fabric trading and processing, primarily based in Gujarat, and plans to use IPO proceeds for working capital and capital expenditure [4][8] Group 3: Jayesh Logistics IPO - Jayesh Logistics will open its IPO worth Rs 28.63 crore on October 27, closing on October 29, with a price band of Rs 116 to Rs 122 per share [5][8] - The company provides transport, warehousing, and supply chain management services to industrial clients across India, with funds raised aimed at working capital and general corporate purposes [5][8] Group 4: Market Outlook - Analysts suggest that the upcoming IPOs could signal a revival of IPO activity after a brief lull, with a busy November anticipated [6][8] - Other companies targeting November listings include Lenskart, Veeda Clinical Research, and ICICI Pru AMC among others [6][8]

Core Insights - Orkla India is launching a Rs 1,667 crore IPO, which is entirely an offer for sale of 2.28 crore equity shares, with proceeds going to selling shareholders [1][11] - The price band is set at Rs 695–730 per share, with a minimum investment of Rs 14,600 for retail investors [2][11] - The company has a strong brand portfolio including MTR Foods, Eastern Condiments, and Rasoi Magic, positioning it well in the Indian packaged foods market [3][11] Company Operations - Orkla India operates nine manufacturing units in India and utilizes contract facilities in the UAE, Thailand, and Malaysia, selling over 2.3 million units daily across 28 states and 6 union territories, with exports to 42 countries [5][11] - The company is a market leader in southern India and is expanding its national presence, supported by a distribution network of 834 distributors and 1,888 sub-distributors [6][11] Financial Performance - For FY25, Orkla India reported revenue of Rs 2,455 crore, a 3% year-over-year increase, and a profit after tax of Rs 256 crore, up 13% year-over-year, with an EBITDA of Rs 396 crore and healthy margins of 16.6% [7][11] - The company is nearly debt-free with minimal borrowings of Rs 2 crore, a return on capital employed (ROCE) of 32.7%, and a return on net worth (RoNW) of 13.8% [8][11] Valuation and Market Outlook - At the upper end of the price band, the IPO values Orkla India at a P/E of 31.7x post-issue and a market capitalization of approximately Rs 10,000 crore, comparable to FMCG peers like Marico and Tata Consumer, but at a slight discount to premium brands like Nestle India and Hindustan Unilever [9][11] - The grey market premium (GMP) of Rs 55–60 indicates a potential 8% listing gain, with shares expected to debut around Rs 785–790 if market sentiment remains stable [10][11] - Analysts foresee long-term growth opportunities in packaged food consumption in India, driven by urbanization and convenience-led lifestyles, with Orkla's focus on value-added regional brands and category innovation expected to sustain growth [10][11]