Orkla India, the powerhouse behind household names like MTR Foods and Eastern Condiments, is all set for a major debut on Indian stock exchanges. Backed by the Norwegian conglomerate Orkla ASA, this IPO is catching eyes for its strong FMCG portfolio and robust financials. If you’re considering subscribing, read on for all you need to know – company business, issue details, schedule, GMP, financials, and leading broker views.
Company Business Overview
Orkla India is a multi-category food company best known for its leadership in packaged foods, especially in South India. The company manufactures and markets a wide range of products spanning spices, breakfast mixes, ready-to-eat meals, beverages, snacks, and desserts under brands such as MTR Foods, Eastern Condiments, and Rasoi Magic.
- Owns 9 manufacturing plants across India.
- Exports to 42 countries, including the US, Canada, and the GCC nations.
- 66%+ of revenue comes from branded spices; rest from convenience foods and ready mixes.
- Strongest presence in markets like Karnataka, Kerala, Andhra Pradesh, Telangana.
Orkla’s acquisition-driven track record (notably, MTR Foods in 2007 and Eastern Condiments in 2020) has underpinned its rapid market share expansion and diversified product portfolio. The business focuses on quality, extensive distributor networks, and broad consumer trust.
Orkla IPO Issue Details
| Parameter | Details |
|---|---|
| Issue Size | ₹1,667.54 crore [OFS only] |
| Price Band | ₹695 – ₹730 per share |
| Face Value | ₹1 per share |
| Shares Offered | 2,28,43,004 (22.84 million) |
| IPO Type | Book Built (Mainline) |
| Lot Size | 20 shares per lot |
| Minimum Investment | ₹14,600 (at lower band) |
| Promoters Selling | Orkla ASA, Orkla Asia Pacific |
| No Fresh Issue | 100% Offer for Sale |
| Listing Exchanges | NSE, BSE |
| Registrar | Kfin Technologies |
Reservation:
- QIB: up to 50%
- Retail: at least 35%
- NII: at least 15%
Key IPO Dates
| Event | Date |
|---|---|
| Anchor Investor Day | 28 October 2025 |
| IPO Open Date | 29 October 2025 |
| IPO Close Date | 31 October 2025 |
| Allotment Finalisation | 5 November 2025 |
| Refunds Initiated | 6 November 2025 |
| Shares Credited | 6 November 2025 |
| Listing Date | 6 November 2025 |
Orkla IPO GMP (Grey Market Premium)
As of the latest, Orkla IPO’s grey market premium hovers in the range of 8–10% above the issue price, pointing to moderate listing expectations among market participants.
Orkla India Financials (Consolidated)
Mobile-optimized Table:
| FY / Period | Revenue (₹ Cr) | EBITDA Margin (%) | PAT (₹ Cr) | ROE (%) |
|---|---|---|---|---|
| FY2023 | 1,591 | 14.4 | 122 | 22% |
| FY2024 | 1,571 | 15.2 | 137 | 24% |
| Q1 FY2025 | 389 | 14.8 | 37 | – |
- Spices contributed 66.6% of revenue in FY2025; convenience foods ~33.4%
- Steady margin improvement thanks to branded premiumization and route-to-market efficiencies
Lead Managers and Registrar
- Book Running Lead Managers: ICICI Securities, Citigroup Global Markets, JP Morgan India, Kotak Mahindra Capital
- Registrar: Kfin Technologies
Strengths & Risks
Strengths
- Iconic brands with high recall across South India
- Robust export channels and scale
- Strong financials, consistent profit growth
Risks
- Full OFS – no fresh capital to company
- Highly competitive packaged foods sector (HUL, ITC, Nestle are rivals)
- Margins are sensitive to agri-commodity prices
Broker Recommendations
- Most domestic brokerage houses rate Orkla IPO as “Subscribe” for long-term investors based on strong brands, growth track record, and reasonable valuation (~₹10,000 cr market cap at upper band).
- Risks cited include lack of fresh fund infusion and sectoral competition.
- Consensus 12-month target (implied): ₹850–900 per share, indicating 15–20% potential upside from upper price band if listing and performance remain healthy.
Investment Recommendation
The Orkla IPO offers investors an opportunity to participate in a legacy FMCG franchise with premier brands loved by millions. While the 100% OFS reduces the attractiveness for those seeking fresh capital raising, the company’s dominant market position, export potential, and visible margin trajectory make it a good bet for long-term portfolios seeking FMCG exposure. Moderate listing gains are probable given strong GMP and anchor activity, but long-term growth potential is the real draw.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before investing in any IPO or equity instrument.
