Orkla India IPO Subscribed 78% on Day 1

New Delhi, Oct 29 (PTI) The initial public offer of Orkla India Ltd, which owns spices and condiments brands MTR and Eastern, received 78 per cent subscription on the first day of bidding on Wednesday.

The company's IPO received bids for 1,25,56,940 shares against 1,59,99,104 shares on offer, as per NSE data.

The portion for non-institutional investors attracted 1.53 times subscription, while the category for Retail Individual Investors (RIIs) received 90 per cent subscription. The quota meant for Qualified Institutional Buyers (QIBs) got subscribed 2 per cent.

Orkla India on Tuesday said it has raised around Rs 500 crore from anchor investors.

The company's Rs 1,667 crore initial public offering (IPO) will conclude on October 31.

It has fixed a price band of Rs 695 to Rs 730 per share, aiming for a valuation of around Rs 10,000 crore at the upper end.

The company's IPO is a complete offer for sale (OFS) of 2.28 crore equity shares by the promoter and other shareholders, with no fresh issue component.

Under the OFS, promoter Orkla Asia Pacific Pte and shareholders -- Navas Meeran and Feroz Meeran -- are offloading shares.

At present, promoters -- Orkla Asia Pacific Pte. Ltd and Norwegian industrial investment company Orkla ASA -- hold 90 per cent stake, while Navas Meeran and Feroz Meeran own 5 per cent stake each in the company.

Since it is an OFS, the company will not receive any proceeds from the IPO, and the entire money will go to the selling shareholders.

Orkla India, formerly known as MTR Foods, is a multi-category Indian food company. It manufactures products as spices, ready-to-eat, sweets and breakfast mixes, under prominent brands such as MTR, Rasoi Magic, and Eastern.

The company sells its products under the brands MTR and Eastern.

Orkla India will make its debut on the stock exchanges on November 6.