The Orkla India IPO opened today, October 29, 2025, with the IPO closing on October 31, 2025. The company, formerly known as MTR Foods, aims to raise ₹1,667.54 crore through this IPO. This is entirely an offer for sale (OFS) of 2.28 crore shares by existing shareholders, including Orkla Asia Pacific Pte. Ltd., Navas Meeran, and Feroz Meeran. Since it is an OFS, the company will not receive any funds from the IPO.
Price Band and Lot Size
The price band for the IPO is set at ₹695 to ₹730 per equity share. Retail investors can apply for a minimum lot size of 20 shares, requiring an investment of ₹14,600 at the upper price band.
Grey Market Premium (GMP)
As of October 28, 2025, the grey market premium (GMP) for Orkla India IPO was around ₹77 to ₹88. According to investorgain.com, the GMP is ₹84, indicating that the estimated listing price could be ₹814 per share, about 11.51% higher than the IPO price of ₹730. Another report suggests a GMP of ₹77, potentially leading to a listing price of ₹807. However, it's important to note that GMP is speculative and doesn't guarantee listing gains.
Subscription Status
The IPO opened for subscription today, October 29, 2025. Subscription status will be updated throughout the day, reflecting the demand from Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and Retail Investors.
Allotment and Listing Dates
The basis of allotment is expected to be finalized on November 3, 2025. Refunds will be processed on November 4, 2025, with shares credited to demat accounts on the same day. The stock is expected to be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 6, 2025.
Anchor Investors
Prior to the IPO opening, Orkla India raised ₹499.67 crore from anchor investors by allocating 68,43,900 equity shares at ₹730 per share. Major investors included Nippon India Small Cap Fund, Aditya Birla Sun Life Consumption Fund, and LIC Mutual Fund schemes.
Company Overview
Orkla India, a subsidiary of Norway-based Orkla ASA, is a multi-category Indian food company with brands like MTR, Eastern Condiments, and Rasoi Magic. The company offers a wide range of products, including spices, ready-to-eat meals, and breakfast mixes. As of June 30, 2025, Orkla India offered over 400 products and sold approximately 2.3 million units daily.
Financial Performance
Orkla India's revenue increased by 3% and profit after tax (PAT) increased by 13% between FY24 and FY25. The company's revenue from operations rose from ₹21,724.8 million in FY23 to ₹23,947.1 million in FY25. The company has strong profit margins with a 10.7% profit margin in FY25.
Key Considerations
- Offer for Sale: The IPO is entirely an OFS, meaning the company will not receive any proceeds.
- Competitive Landscape: Orkla India considers Tata Consumer Products Ltd. as its listed peer, which has a higher price-to-earnings (PE) ratio.
- Valuation: The IPO is valued at a post-IPO P/E of 31.68x, which is considered fairly priced by some analysts, considering its diversified product portfolio and strong market presence.
- Risk Factors: The company faces risks related to fluctuations in raw material prices and potential supply chain disruptions.
Brokerage Reviews
Angel One has recommended a "subscribe" rating for the IPO, citing its diversified product portfolio, strong market presence, and long-term growth visibility. However, they also noted risks from volatility in raw material and packaging material prices.
Should You Apply?
Investors should consider their risk tolerance and investment horizon before applying for the Orkla India IPO. The company has strong brands and a significant presence in the South Indian market. However, the IPO is an OFS, and the valuation appears fully priced. Investors should carefully review the Red Herring Prospectus (RHP) and consult with financial advisors before making a decision.
