Orkla India IPO Sees Strong Investor Interest on Day 2, Subscribed 1.54 Times

Orkla India, known for brands like MTR and Eastern Condiments, has launched a significant Initial Public Offering (IPO) worth ₹1,667 crore. The IPO is structured as an Offer for Sale (OFS), meaning existing shareholders are selling their stakes, and no fresh capital is being raised by the company itself. The subscription figures on the second day indicate robust investor demand, with the overall issue being subscribed 1.54 times by 12:39 pm.

The non-institutional investor (NII) category showed the strongest interest, subscribing 3.57 times. Retail investors subscribed 1.53 times, and the employee quota was highly oversubscribed at 5.02 times. However, the Qualified Institutional Buyer (QIB) segment has seen very limited participation so far, with a subscription rate of just 0.03 times.

The company had already secured approximately ₹500 crore from anchor investors prior to the public offering. The IPO opened on October 29, 2025, and is set to conclude tomorrow, October 31, 2025. The shares are expected to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 6, 2025.

Impact: The strong subscription, particularly from NII and retail segments, suggests positive market sentiment towards Orkla India's offering. This could lead to a strong debut on listing day, although the low QIB participation might be a point to watch. An OFS IPO, while beneficial for selling shareholders, does not directly infuse capital into the company for growth. Impact Rating: 7/10

Difficult Terms: IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company. Offer for Sale (OFS): An IPO where existing shareholders sell their shares to the public, rather than the company issuing new shares. Non-Institutional Investor (NII): Investors who apply for shares worth more than ₹2 lakh in an IPO. This category includes high-net-worth individuals, corporate bodies, and trusts. Retail Investor: Individual investors who apply for shares worth up to ₹2 lakh in an IPO. Qualified Institutional Buyer (QIB): Large institutional investors like mutual funds, foreign institutional investors, banks, and insurance companies. Anchor Investors: Institutional investors who commit to buying shares before the IPO opens to the public, providing early support. Subscription: The process where investors apply for shares offered in an IPO. If the number of shares applied for exceeds the number of shares offered, the IPO is said to be subscribed. Lot Size: The minimum number of shares an investor can apply for in an IPO.