Orkla IPO
The Orkla IPO marks the public debut of Orkla India Limited, the company behind well-known food brands like MTR Foods and Eastern Condiments. The company is offering shares to the public through an initial public offering (IPO) worth about ₹1,667.54 crore.
- Orkla IPO
- Company Background & Business at a Glance
- The Offer Details: Orkla IPO Structure
- Financials & Business Metrics
- Strengths & Growth Drivers
- Risks & Things to Watch
- How the Market is Reacting
- Valuation & Peer Comparison
- Summary & What To Consider
- Frequently Asked Questions (FAQ) about the Orkla IPO
- Final Thoughts
- Related Posts
The price band for the issue has been fixed at ₹695 to ₹730 per share. The IPO opens for subscription from 29 October 2025 and closes on 31 October 2025. The listing is expected on both the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) on 6 November 2025.
This IPO is entirely an “Offer for Sale” (OFS). That means no new shares are being issued; instead, existing shareholders are selling their shares through this IPO. The company itself will not receive any proceeds from this issue.
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For investors, the Orkla IPO offers a chance to invest in a food company with strong regional brands. But as always, there are risks worth knowing.
Company Background & Business at a Glance
Orkla India Limited is part of the larger Norwegian conglomerate Orkla ASA. The business brings together brands like MTR Foods and Eastern Condiments and serves the packaged-foods, spices and convenience foods space in India.
Key facts
- The company’s core products include spices (both blended and pure), ready-to-cook and ready-to-eat convenience foods.
- Its roots run deep: The MTR-brand portion, for example, started as Mavalli Tiffin Rooms in Bengaluru in 1924.
- Geographically, the company has strong presence in South India. According to one report, about 70% of revenues come from that region.
- The manufacturing and distribution network is fairly extensive, with many products and many outlets involved.
Why the business matters
- India’s packaged-food market is growing, with rising demand for convenience and region-specific flavours. For example, one estimate puts the market growth at around 10.8% CAGR (FY19-24) in this segment.
- A company like Orkla India, which has regional strength and known brands, can tap into that growth.
- The offer is from an established company rather than a start-up, which may comfort some risk-aware investors.
The Offer Details: Orkla IPO Structure
Here is a breakdown of the key terms for the Orkla IPO.
| Item | Detail |
|---|---|
| Total issue size | ~ ₹1,667.54 crore (OFS) |
| Price band per share | ₹695 to ₹730 |
| Face value of share | ₹1 |
| Minimum lot size | 20 shares (thus minimum investment ~ ₹14,600 at upper band) |
| Issue open date | 29 October 2025 |
| Issue close date | 31 October 2025 |
| Tentative listing date | 6 November 2025 |
| Offer type | 100% Offer for Sale (OFS) – no fresh issue component |
Reserved shares by category
According to media sources, the reservation is roughly:
- Qualified Institutional Buyers (QIB): up to ~50%
- Non-Institutional Investors (NII): at least ~15%
- Retail Individual Investors (RII): at least ~35% (mint)
Use of proceeds
Because the issue is purely an OFS, the company will not receive any funds from this IPO. All proceeds will go to the existing selling shareholders.
Financials & Business Metrics
Here are some of the recent financial highlights and metrics for Orkla India. These help assess how the company is performing before investing in the Orkla IPO.
Recent performance
- For the year ended March 2025, revenue was around ₹2,455.24 crore.
- Profit after tax (PAT) in FY25 was about ₹255.69 crore, up from ~₹226.33 crore in FY24.
- The PAT margin was roughly 10.7% for FY25.
Key ratios
- According to a report: EBITDA margin ~16.6% vs industry ~13.5%.
- Revenue CAGR over FY23-FY25 ~5.6%.
Valuation snapshot
At the upper end of the band (₹730), the company’s valuation works out to a price-to-earnings (P/E) multiple of about 34.6 times (based on FY25 earnings) as per one comparison.
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Table summarising metrics
| Metric | Value |
|---|---|
| Revenue FY25 | ~ ₹2,455 crore |
| PAT FY25 | ~ ₹255.7 crore |
| PAT margin FY25 | ~10.7% |
| P/E (upper band) | ~34.6× |
| Price band | ₹695-₹730 per share |
| Lot size | 20 shares |
Strengths & Growth Drivers
Here are some of the positive aspects behind the Orkla IPO story.
- Strong brand portfolio: With brands like MTR and Eastern, the company enjoys recognition especially in South India.
- Focus on packaged foods and convenience foods: These segments are expected to grow as consumer habits shift.
- Distribution network: A wide network across states, and presence in the export markets, helps growth potential.
- Relatively efficient business: According to one report, the company had higher profitability than industry average (for example PAT margin ~10.7% vs ~7.3% in the industry).
- Limited capital dilution risk: Since this IPO is an OFS (no fresh shares), existing shareholders are exiting rather than the company raising fresh capital. That means the business won’t be diluted by the IPO.
Risks & Things to Watch
Even a good business has risks. Before subscribing to the Orkla IPO, investors should be aware of these.
- Geographic concentration: A large share of revenues comes from South India (e.g., ~70% in some reports). A heavy reliance on a region can be risky if consumer behaviour changes or competition intensifies.
- Raw material and packaging cost volatility: Since the business is in packaged foods/spices, fluctuations in raw material prices can hurt margins.
- Product safety and regulatory risk: Issues like contamination, improper storage, or spoilage can harm reputation and financials.
- Competition: Other brands and players in the packaged foods and spices segment may challenge market share or put pressure on margins.
- Being an OFS: Since the company is not getting fresh capital to expand, growth may depend on organic means rather than a capital raise, which sometimes slows expansion.
How the Market is Reacting
Here’s a look at how the Orkla IPO is being perceived in the market right now.
- The grey market premium (GMP) has been strong. One report noted GMP at ~₹106 (~14.5%) indicating expected listing gains.
- Another report noted GMP ~₹114 (~15%) ahead of listing.
- Analysts’ views are mixed: Some see potential for the long term, others say the valuation may be fair but not overly cheap. (E.g., one broker coined “Neutral” valuation stance).
So, while sentiment appears positive, much depends on the post-listing performance and how the company executes.
Valuation & Peer Comparison
Comparing with a peer helps put things in perspective.
- For instance, the only listed peer mentioned in one article is Tata Consumer Products Limited, which trades at a much higher P/E (~90×) than Orkla India’s ~34-35× range.
- A lower multiple compared to the peer could be favourable for Orkla India, but the peer also has much larger scale and national presence.
Therefore, though Orkla India appears priced more affordably relative to a peer, the gap in scale and reach must be kept in mind.
Summary & What To Consider
Here are the key take-aways about the Orkla IPO:
- It opens on 29 October and closes on 31 October 2025, at a price band of ₹695-₹730 per share.
- It is entirely an Offer for Sale (OFS) of about ₹1,667.54 crore. The company doesn’t receive fresh capital.
- The business is reasonably profitable, with FY25 PAT margin ~10.7%. But growth in recent years has been modest.
- The company has strengths (brand, distribution, regional dominance) and some clear risks (geographic concentration, input costs, competition).
- Valuation appears moderate relative to peer, but investors should not ignore the risk of slower growth or execution issues.
- If you believe in the story of convenience foods, strong regional brands and think the listing will deliver a short-term gain, you might consider applying. If you are looking for a fast flip, keep in mind that gains may be moderate and market expectations may already be priced in.
Frequently Asked Questions (FAQ) about the Orkla IPO
Q. What is the lot size for the Orkla IPO?
A. The minimum lot size is 20 shares. At the upper price band of ₹730, investment for one lot would be ₹14,600.
Q. Is this a fresh issue of shares by the company?
A. No. This IPO is entirely an Offer for Sale (OFS). No new shares are being issued, and the company will not receive proceeds.
Q. When will the shares list on the stock exchange?
A. Tentative listing date is 6 November 2025 on NSE and BSE.
Q. What is the price band for the Orkla IPO?
A. The price band is ₹695 to ₹730 per share.
Q. What are some of the risks to keep in mind?
A. Key risks include input-cost volatility, heavy reliance on one region (South India), competition, regulatory or safety issues, and execution of expansion plans.
Final Thoughts
If you are thinking about subscribing to the Orkla IPO, here are my simple, plain-language thoughts:
- This is a reasonably good company with strong regional brands and a fair track record.
- The issue is not super cheap, but not expensive compared to some peers either.
- If you are investing for the medium to long term (3-5 years) and believe in the Indian packaged-foods growth story, you could view this as a decent option.
- If you are looking for a quick listing pop or heavy short-term gains, you should temper your expectations: the grey market premium suggests some gain may be baked in.
- Make sure your investment fits your risk profile. No company is risk-free.
- Keep track of how the company performs post-listing — specifically its growth in new regions, its ability to manage costs, and how it handles competition.
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