Published on: 2025-11-04
Orkla India Limited, the parent company behind leading packaged foods brands such as MTR Foods, Eastern Condiments, and Rasoi Magic, has electrified the IPO market with its much-anticipated public offering.
The Orkla India 2025 IPO was a pure Offer For Sale (OFS) of ~2.28 crore shares aggregating to ₹1,667.54 crore. The company did not generate any new equity. The issue was priced at a ₹695–₹730 band (lot size: 20 shares), with the public bidding window from October 29 to 31, 2025.
The OFS size was approximately ₹1,667.5 crore, and anchor investors placed ₹500 crore at the upper band, with strong institutional interest pushing the issue to an overall subscription of roughly 49 times.
Below is a comprehensive look at Orkla India's IPO price band, subscription details, key dates, company fundamentals, investor sentiment, and market outlook
| Item | Details |
|---|---|
| IPO Size | ₹1,667.54 crore (pure OFS of ~2.28 crore shares) |
| Price Band | ₹695 – ₹730 per share |
| Bid Lot Size | 20 shares |
| IPO Dates | October 29 – 31, 2025 |
| Allotment Date | November 3, 2025 |
| Listing Date | November 6, 2025 (expected) |
| Type | Offer for Sale (no fresh issue) |
| Lead Managers | ICICI Securities, Citigroup, JP Morgan, Kotak |
| Registrar | Kfin Technologies |
| Exchanges | NSE, BSE |
| Parent Company | Orkla ASA (Norwegian FMCG multinational) |
Here's what makes this IPO one of the most talked-about listings of 2025.
The price band stands at ₹695–₹730 per share, translating to a post-offer valuation of around ₹10,000 crore (about $1.2 billion).
Orkla India's net profit for FY25 stands at ₹255.7 crore, resulting in an EPS of ₹18.70 and a P/E ratio of 37–39x based on the IPO price range.
The IPO is considered attractively priced at a substantial discount to Tata Consumer Products' trailing multiple (over 80x) but at a premium to smaller FMCG peers.
IPO Subscription: Orkla India's IPO concluded with outstanding demand, achieving a 48.73x overall subscription.
QIBs: 117.63x
Non-Institutional Investors: 54.42x
Retail: 7.05x
Anchor Investor Book: The anchor book raised ~₹499.6 crore at ₹730 per share (6,843,900 shares), with participation from domestic and global funds, including Nippon Life India, Aditya Birla Sun Life AMC, Nomura, Jupiter, Pinebridge, Baroda BNP Paribas MF, Government Pension Fund Global and others. [1]
Additionally, Orkla India's IPO had a GMP of 9-10% (₹70–₹75 per share) as of the day before listing, signalling moderate expected pop on debut but some caution due to profit booking.
Orkla India, previously known as MTR Foods Private Limited, represents Norway's Orkla ASA in India and features well-known local food brands like MTR Foods, Eastern Condiments, and Rasoi Magic, among others.
The company operates nine manufacturing facilities in India (plus contract manufacturing across the UAE, Thailand, and Malaysia), services 834 distributors and ~1,888 sub-distributors, and reaches over 400,000 retail outlets. The company sells 2.3 million units per day as of mid-2025, ranked among the top four by sales in its core segments.
Revenue (FY25): ₹2,395–2,455 crore
Net Profit (FY25): ₹255.7 crore
EBITDA Margin (FY25): 16.6%
ROCE: 32.7%
Growth: Revenue CAGR 5% (FY23–FY25); PAT CAGR above 10%; zero net debt; healthy cash flows
Dividend Record: Orkla Asia Pacific took a one-off dividend (₹500 crore), reflecting a robust retained earnings position.
| Metric | Orkla India | HUL | Nestlé India | Britannia | Mid-tier FMCG Peers |
|---|---|---|---|---|---|
| P/E Ratio (FY25E) | ~37–39× | ~55× | ~70× | ~50× | 25–35× |
| Revenue Growth (YoY) | ~11–13% | ~9–10% | ~8–9% | ~11% | 10–14% |
| EBITDA Margin | ~15–17% | ~23–25% | ~22–24% | ~17–19% | 10–15% |
| Distribution Breadth | Strong in South India, expanding nationally | Pan-India | Pan-India | Pan-India | Mostly regional |
| Debt / Leverage | Low leverage | Moderate | Low | Moderate | Mixed |
| Cash Flow Strength | Solid, improving | Strong | Very strong | Healthy | Variable |
MTR and Eastern are durable names in the ready-to-eat/spice segments.
Dominant regional presence that is scalable.
Multiple SKUs across price points that smooth seasonality.
₹500 crore anchor book at the upper band provided a pre-listing validation.
Paying 37–39× P/E leaves little room for disappointment. Any miss in growth or margin contraction could trigger a sharp re-rating.
Because the IPO is an offer for sale, significant post-listing supply could pressure early performance, especially if large shareholders sell in secondary markets after lock-ups expire.
The packaged-foods market is crowded; pricing pressure from private labels or aggressive promos could hurt margins.
While national implementation is in progress, a significant southern bias indicates that short-term growth relies on effective expansion into the north and west.
Watch GMP and anchor behaviour; set stop losses; consider not over-leveraging on first-day volatility. Early listing pops are common but can reverse.
Look for confirmation of north/west expansion, new SKU success, and stable margins.
If growth and distribution indicators are performing well, a post-listing accumulation plan focused on quarterly outcomes can be effective.
Evaluate the brand moat, management strategy, and execution on national expansion.
If you believe in sustained market-share gains and margin expansion, the premium may be tolerable if sized prudently.
₹695 – ₹730 per share.
Yes, the overall subscription was 48.73 times, driven by QIBs at 117x.
No, it's a pure Offer for Sale (OFS). No new capital raised.
In conclusion, Orkla India's IPO is a high-profile OFS that brings a strong regional FMCG champion to public markets. Anchor interest and heavy QIB bidding suggest institutional confidence, but rich valuation and secondary-sale mechanics mean early investors must balance excitement with realistic execution expectations.
If you're a short-term trader, the listing offers event-driven trade, but expect volatility. If you're a long-term investor, focus on whether Orkla India can translate its strong southern franchise into a profitable national expansion that justifies premium multiples.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.
