Orkla India IPO Listing: The popular MTR Foods brand owner, Orkla India, has finally debuted on BSE and NSE. However, the listing of Orkla is rather lackluster.
On BSE, Orkla is listed at a 2.95% premium, while the debut is at a 2.75% premium on NSE. But this new FMCG stock could not sustain its gains and is currently trading lower. Experts are suggesting evaluating any post-listing correction and be on wait-and-watch mode before adding Orkla India stock.
Orkla India Share Price BSE:
On BSE, the stock listed at Rs 751 per share, a premium of 2.95% from its IPO issue price of Rs 730. In the early deals, the IPO touched its new 52-week high of Rs 755 apiece. However, soon after, Orkla erased its gains and traded on a bearish note. The stock touched a new 52-week low of Rs 693.35 apiece.
At the time of writing, Orkla is performing at Rs 729.50 apiece, down by nearly 3% from its listing price. But the IPO is marginally lower from its IPO price. The company’s market cap is at Rs 9,993.36 crore currently.
Orkla is listed and admitted on BSE, to dealings on the Exchange in the list of ”B” Group Securities.
Orkla India Share Price NSE:
Here, Orkla listed at 2.75% premium to Rs 750 per share. However, the stock touched a 52-week high and low of Rs 760 apiece and Rs 692.55 in the early trade.
Currently, the stock traded at Rs 729.35 apiece on BSE, down by 3% from listing price and lower by 0.4% from IPO price. At the current market price, the company’s valuation is at Rs 9,957.06 crore.
What Should Investors Do In Orkla India Share Price?
“Despite the IPO being a 100% Offer for Sale (OFS), the issue witnessed subscription demand above street expectations, reflecting strong investor interest,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
According to the expert, while considering the current muted market sentiment, listing was very much flat on the issue price. Decent flat listing give away a great opportunity for long term investors as we continue to believes that Orkla India, a market-leading packaged food and spices company backed by iconic brands such as MTR and Eastern, presents a compelling long-term structural growth story.
Further, the expert added that the strong response to the issue underscores confidence in the company’s fundamentals and its ability to capitalize on the growing demand for convenience foods across key geographies.
Accordingly, the expert said, “So allotted investors are advised to hold the stock from a long-term investment perspective, while being mindful of inherent market risks. For non-allotted investors, Mehta Equities suggests a ‘Wait and Watch’ approach to evaluate any post-listing correction as a potential entry opportunity.”
Orkla launched its Rs 1,667.54 crore IPO on October 29th, and the subscription was available till October 31st. The IPO was entirely offer for sale of up to 2.28 crore shares. The price band was fixed at Rs 695 to Rs 730 per share. On the final day, the IPO cumulatively oversubscribed by 48.73x with bids of 77,96,62,340 equity shares against the offered size.
About Orkla India Limited:
The Company is a multi-category Indian food enterprise with operations spanning several decades, offering a broad and diverse range of products that cover every meal occasion – from breakfast, lunch and dinner to snacks, beverages and desserts. Under the two flagship brands, MTR and Eastern, the Company delivers authenticity and tradition, deeply rooted in South Indian culinary heritage. In Fiscal 2024, according to a report by Technopak Advisors, the Company ranked among the top four companies in terms of revenue from operations in the select universe of leading branded spices and convenience food peers.