Orkla India Ltd., a multi-category food business, has successfully raised Rs 499.60 crore from anchor investors as it prepares to launch its Initial Public Offering (IPO). This development marks a significant step in the company's journey towards going public.

Anchor Investment Details

The company allotted 68.43 lakh shares to 30 anchor investors at Rs 730 per share. Here's a breakdown of the key investors and their allocations:

Notably, six domestic mutual funds, through 13 schemes, collectively secured 42.40% of the anchor portion, indicating strong interest from institutional investors.

IPO Structure and Timeline

The IPO is structured as an Offer for Sale (OFS), with the following key points:

• Subscription Period: October 29 to October 31
• Sellers: Promoter Orkla Asia Pacific and shareholders Navas Meeran and Feroz Meeran
• Proceeds: The company will not receive any proceeds as it is an OFS structure
• Expected Promoter Gain: Rs 1,500 crore

Company Overview

Orkla India operates a diverse food business portfolio with several well-known brands:

• MTR
• Rasoi Magic
• Eastern

The company boasts an extensive product range of over 400 items and a robust distribution network:

This network spans 28 states and five union territories, showcasing the company's strong presence across India.

Market Implications

The successful raising of funds from anchor investors, particularly the significant participation of domestic mutual funds, suggests a positive sentiment towards Orkla India's IPO. This could potentially set a favorable tone for the public offering.

Investors should note that as an OFS, the proceeds will go to the selling shareholders rather than the company itself. This structure implies that the IPO is primarily a liquidity event for existing shareholders rather than a capital-raising exercise for the company's growth initiatives.

As the IPO approaches, market participants will be keenly watching the public response and the performance of Orkla India's shares in the secondary market post-listing. The food industry's growth prospects and Orkla India's established brand presence could be factors influencing investor interest in this offering.

Orkla India Ltd., the company behind popular spice brands MTR and Eastern, is preparing for its Initial Public Offering (IPO). The IPO has garnered attention in the grey market, suggesting potential listing gains for investors.

IPO Details

Grey Market Premium and Potential Gains

The grey market is showing enthusiasm for Orkla India's IPO, with a premium of ₹106 per share. This indicates:

• Estimated listing price: ₹836
• Potential listing gains: 14.52% (based on the upper price band)

About Orkla India

Orkla India operates as a multi-category food company with a diverse product portfolio:

• Over 400 products across various categories
• Well-known brands: MTR, Rasoi Magic, and Eastern
• Extensive distribution network: 843 distributors across 28 states and 5 union territories

IPO Structure and Proceeds

The IPO is structured as an Offer for Sale (OFS) by:

• Promoter: Orkla Asia Pacific
• Public shareholders

It's important to note that as this is an OFS, the proceeds from the IPO will go to the selling shareholders rather than the company itself.

Investor Considerations

While the grey market premium suggests investor interest, it's crucial to remember that grey market trends are unofficial and not guaranteed. Potential investors should:

1. Carefully review the company's financials and growth prospects
2. Consider the competitive landscape in the Indian food industry
3. Assess their own risk appetite and investment goals before participating in the IPO

The Orkla India IPO presents an opportunity for investors to participate in the growth story of a well-established player in the Indian food industry. As always, it's advisable to conduct thorough research and consult with financial advisors before making investment decisions.