IPO Archives - Page 3 of 3 - Corporate Updates

SEBI Widens IPO Anchor Investor Quota To 40%

The Securities and Exchange Board of India (SEBI) has amended rules regarding the share-allocation framework for anchor investors in maiden public offerings. This strategy is aimed at broadening the participation of domestic institutional investors such as mutual funds, insurance companies and pension funds.

Under this, Sebi has increased total reservation in the anchor portion to 40 per cent from 33 per cent earlier. This comprises 33 per cent for mutual funds and the remaining 7 per cent for insurers and pension funds.

If the 7 per cent reserved for insurers and pension funds remains unsubscribed, it will be reallocated to mutual funds, the markets regulator said in a notification dated October 31.

SEBI has also the number of anchor investors allowed for IPOs with an anchor portion above Rs 250 crore, by raising the existing limit from 10 to 15 per Rs 250 crore.

This means, a minimum of 5 and a maximum of 15 investors shall be allowed for allocations up to Rs 250 crore. For every additional Rs 250 crore or part thereof, an additional 15 investors are to be permitted, subject to a minimum allotment of Rs 5 crore per investor, according SEBI.

Also, in the discretionary allotment under anchor portion, Category I (up to Rs 10 crore) and Category II (above Rs 10 crore up to Rs 250 crore) have been merged into a single category for allocations up to Rs 250 crore, with a minimum number of anchor allottees as 5 and maximum as 15 (minimum allotment 5 crore per investor).

The framework would broaden the participation of long-term institutional investors in the IPOs. To give these effect, the regulator has amended Issue of Capital and Disclosure Requirements norms, which would come into force from November 30.

Also Read: Orkla India IPO lists at ₹750, 3% Up

Orkla India IPO lists at ₹750, 3% Up

Orkla India’s initial public offering (IPO), which opened for subscription from 29–31 October 2025, attracted strong investor interest but saw a muted debut on the stock exchanges. The IPO, priced in the ₹695–₹730 band, was entirely an Offer for Sale (OFS) of 2.28 crore shares, raising approximately ₹1,667.54 crore.

Allotment was completed on 3 November, and trading began on 6 November 2025 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Shares opened at ₹750.10 on the NSE, about 2.75% above the upper price band, and ₹751.50 on the BSE, roughly 2.95% higher. However, early gains evaporated quickly as the stock slipped during intraday trading, touching a low of ₹693.35 on the BSE, down 5–7% from the listing price.

Before listing, grey market premiums had suggested a 9% expected gain, higher than the eventual performance. Analysts say the strong subscription, around 48.73 times overall, signals investor interest, but the modest listing gain reflects a cautious market mood.

For existing shareholders, experts recommend holding for the medium to long term, citing Orkla India’s strong brand portfolio and growth prospects. New investors are advised to monitor post-listing trends, as any short-term correction could provide a better entry point.

Risks for the company include a concentration of sales in South India (70% of Q1 FY26 sales) and ongoing legal proceedings (124 cases) that could affect operations or finances. On the positive side, Orkla India benefits from established regional brands, a wide distribution networkof 834 distributors and 1,888 sub-distributors across 28 states and six union territories and exposure to India’s growing packaged-food market, valued at ₹10,180 billion in FY24 and projected to reach ₹17,120 billion by FY29.

Orkla India’s IPO highlights investor interest in branded convenience foods. Yet, the modest premium and early price dip underline the need to align expectations with market realities. While the long-term growth story remains intact, investors are advised to exercise caution amid short-term volatility and regional concentration risks.

Also Read: M&M exits RBL Bank with 62.5% gain