Orkla India IPO: Dates, GMP, Financials and Everything to Know!
The Orkla India IPO, which includes beloved household brands like MTR Foods and Eastern Condiments, is set to hit the market soon. This public offering comes from the Indian arm of the Norwegian industrial giant Orkla ASA, focusing entirely on India's booming packaged food sector. This is a chance to invest in a legacy brand that has successfully consolidated its operations and is ready for the next phase of growth.
1. Key IPO Details and Dates
The IPO is structured as a 100% Offer For Sale (OFS) by the promoter group and other shareholders, meaning the company will not receive any proceeds. The total size is estimated to be around ₹1,660 Crore (based on market reports).
| Particulars | Details (Tentative) |
|---|---|
| IPO Dates | October 29 – 31, 2025 |
| Total Issue Size | ~₹1,660 Crore |
| Issue Type | 100% Offer For Sale (OFS) |
| Shares on Offer | 2,28,43,004 Equity Shares |
| Tentative Listing Date | November 6, 2025 |
2. Business Overview: Brands and Reach
Orkla India consolidated the operations of MTR Foods, Eastern Condiments, and its international business, creating a multi-category food powerhouse. Key highlights include:
- Iconic Brands: Portfolio includes MTR (instant mixes, ready-to-eat), Eastern (spices, masalas), and Rasoi Magic. The focus is on traditional Indian cuisine and convenience foods.
- Market Position: The company is among the top four in revenue among leading spices and convenience food peers in FY24. Eastern has historically been India's largest exporter of branded spices.
- Distribution: It has 9 manufacturing facilities in India and a network of 843 distributors, reaching 28 states and exporting to over 40 countries.
- Debt-Free: The company reported NIL Total Borrowing in FY25, signaling a healthy, self-sustaining business model.
3. Financial Highlights: Growth and Profitability
The company has shown consistent profitability and revenue growth, which is a big positive in the capital-intensive FMCG sector:
| Financials (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 2,201.4 | 2,387.9 | 2,455.2 |
| PAT | 339.1 | 226.3 | 255.7 |
| ROCE | 32.1% | 20.7% | 32.7% |
4. Grey Market Premium (GMP) Analysis
While the official price band is yet to be announced, the Grey Market Premium (GMP) provides valuable insights into investor sentiment and expected listing performance:
- Current GMP: The stock is currently trading at around ₹105 in the grey market, indicating strong investor interest and positive sentiment towards the IPO.
- Market Sentiment: The premium reflects confidence in Orkla India's brand portfolio, consistent profitability, and the parent company's backing from Norwegian industrial giant Orkla ASA.
- Listing Expectations: A positive GMP typically suggests potential listing gains, though investors should note that grey market prices can be volatile and don't guarantee actual listing performance.
Note: GMP is subject to change based on market conditions and official price band announcement.
5. Valuation and Peer Comparison
While the final price band is awaited, the stock will certainly be compared to top FMCG players. The valuation is expected to be premium, typical for a quality MNC brand entering the market. The high ROCE (32.7% in FY25) is a strong indicator of capital efficiency, justifying a premium multiple over general peers. The fact that the parent company, Orkla ASA, is facilitating the IPO also provides confidence in governance and quality.
6. Key Risks and Investment Rationale
The IPO is a compelling long-term buy for exposure to the packaged foods growth story, but here are the risks:
- Raw Material Volatility: The business is highly exposed to price fluctuations in spices (chilli, coriander, turmeric) and wheat products, which can impact margins.
- Competition: Intense competition from both large national players (Tata Consumer) and regional organized/unorganized players in the spices and ready-to-eat segments.
- 100% OFS: Since it's a pure OFS, no funds are coming into the company for expansion. Future growth will be entirely driven by internal accruals and operational efficiency.
The upside lies in the strength of the MTR and Eastern brands, which command loyalty and are deeply embedded in regional tastes. This brand equity offers pricing power and distribution strength necessary for long-term compounding.
7. Orkla India IPO FAQs
Q. When is the Orkla India IPO opening and closing?
A. The Orkla India IPO is tentatively scheduled to open on October 29, 2025, and close on October 31, 2025.
Q. Is the Orkla India IPO a Fresh Issue or an Offer for Sale (OFS)?
A. The IPO is a 100% Offer for Sale (OFS) of up to 2.28 crore shares. The company itself will not receive any proceeds from the offering; the funds will go entirely to the selling shareholders.
Q. What major brands does Orkla India own in India?
A. Orkla India is the parent company of iconic Indian packaged food brands including MTR Foods, Eastern Condiments, and Rasoi Magic.
Q. What is the current Grey Market Premium (GMP) for Orkla India IPO?
A. The current Grey Market Premium (GMP) for Orkla India IPO is around ₹105, indicating strong investor interest and positive sentiment towards the offering.
Q. What is the expected listing date for Orkla India shares?
A. The shares are tentatively expected to be listed on the BSE and NSE on November 6, 2025.
Q. Who is the registrar for the Orkla India IPO?
A. The registrar appointed for the Orkla India IPO is Kfin Technologies Limited.
Just a personal view, for educational purposes only. Do your own due diligence before applying.