Orkla India’s ₹1,667 crore IPO closes today (October 31, 2025) with robust investor demand, achieving 5x oversubscription and trading at a grey market premium of approximately 10% above the issue price. The company behind iconic brands MTR Foods and Eastern Condiments is set to list on November 6, 2025, offering existing shareholders an exit through a 100% offer-for-sale structure.
Table of Contents
IPO Subscription Status
As of 11:30 AM on the final bidding day, Orkla India IPO received bids for 79.15 million shares against 15.99 million shares available, translating to nearly 5x oversubscription. Non-Institutional Investors (NIIs) led the charge with 15.69 times oversubscription of their allocated quota, while retail investors subscribed their portion 3.06 times. The employee category witnessed strong participation at 8.18 times subscription, reflecting internal confidence in the company’s prospects.
However, the Qualified Institutional Buyers (QIB) segment showed tepid response with only 18% subscription as of mid-day on the final day. This mixed institutional appetite suggests cautious optimism among large investors, possibly due to the offer-for-sale structure that brings no fresh capital to the company.
Grey Market Premium Analysis
Orkla India shares are commanding a grey market premium (GMP) of ₹75 per share over the upper price band of ₹730, indicating an estimated listing price of ₹805. This represents a potential 10.3% listing gain for allottees. The GMP has shown stability throughout the bidding period, starting at ₹68 on Day 1 and gradually improving to ₹75-108 across different grey market sources.
The steady premium suggests moderate investor confidence rather than speculative frenzy. For context, grey market premium reflects unofficial trading of IPO shares before listing and serves as an indicator of market sentiment, though it’s not always accurate in predicting actual listing performance.
Key IPO Details
The Orkla India IPO comprises purely an offer-for-sale of 2.28 crore equity shares with no fresh issue component. The price band is set at ₹695-730 per share with a minimum lot size of 20 shares, requiring a minimum investment of ₹14,600. Employees receive a discount of ₹69 per share.
| IPO Parameter | Details |
|---|---|
| Issue Size | ₹1,667.54 crore |
| Issue Type | 100% Offer for Sale |
| Price Band | ₹695 – ₹730 per share |
| Lot Size | 20 shares |
| Bidding Dates | Oct 29-31, 2025 |
| Allotment Date | November 3, 2025 |
| Listing Date | November 6, 2025 |
| Registrar | KFin Technologies |
The company successfully raised ₹499.6 crore through the anchor round, attracting marquee institutional investors including Nippon India Mutual Fund, LIC Mutual Fund, Aditya Birla Sun Life, Nomura Funds, and Government Pension Fund Global.
About Orkla India
Orkla India Foods Private Limited operates as the Indian subsidiary of Norway’s Orkla ASA, managing three powerful brand verticals: MTR, Eastern, and International. The company owns over 400 products spanning blended and pure spices, ready-to-cook mixes, instant breakfast options like dosa and poha, and convenience foods.
MTR Foods, acquired by Orkla in 2007, has grown seven-fold in 16 years to become a ₹1,000 crore brand with deep penetration in South Indian markets. Eastern Condiments, acquired in 2020 for approximately ₹2.4 billion, brought a 40-year-old spice legacy and manufacturing presence across six Indian states. This acquisition nearly doubled Orkla’s household reach in Karnataka from 8.8% in 2021 to 20% by 2024.
The company operates through a hybrid manufacturing model with 9 owned factories producing 1.82 lakh tonnes annually, supplemented by 21 contract manufacturing units spread across India, UAE, Thailand, and Malaysia. Distribution reaches customers through 834 distributors, 1,888 sub-distributors, and partnerships with quick commerce and e-commerce platforms.
Financial Performance
Orkla India reported revenue of ₹2,394.7 crore in FY2025 with consistent growth trajectory. The company’s EBITDA margin expanded to 16.6% in FY2025 from 14.4% in FY2023, while PAT margin stood at 10.7%, delivering a net profit of ₹255.69 crore.
| Financial Metric | FY2023 | FY2024 | FY2025 | CAGR |
|---|---|---|---|---|
| Revenue (₹ crore) | 2,172 | 2,356 | 2,395 | 5% |
| EBITDA (₹ crore) | 312 | 344 | 396 | 13% |
| EBITDA Margin | 14.4% | 14.6% | 16.6% | – |
| PAT (₹ crore) | 339 | 226 | 256 | -13% |
| PAT Margin | 15.6% | 9.6% | 10.7% | – |
| ROCE | 32.1% | 20.7% | 32.7% | – |
The company maintains a healthy Return on Capital Employed (ROCE) of 32.7%, significantly ahead of competitor Tata Consumer Products’ 24.6%. In Q1 FY2026, revenue and net profit grew 6% and 10% respectively year-on-year to ₹597 crore and ₹78.9 crore.
Approximately 79% of revenue originates from India, with exports contributing 20.4% in Q1 FY2026, exposing the business to currency fluctuation risks. The company demonstrated operational efficiency by clocking an EBITDA CAGR of 18.6% between FY2022-FY2025.
Valuation Assessment
At the upper price band of ₹730, Orkla India is valued at approximately 39x FY2025 earnings. This appears reasonable when compared to Tata Consumer Products trading at roughly 90x P/E ratio. The post-issue market capitalization will stand at approximately ₹10,000 crore with promoter stake reducing from 90% to 75%.
The offer-for-sale structure means existing shareholders, primarily the Norwegian parent Orkla ASA, are monetizing their holdings without bringing fresh capital for business expansion. The parent company had declared a maiden dividend of ₹600 crore in FY2025, with the foreign promoter receiving nearly ₹540 crore.
Investment Strengths
Strong Brand Portfolio: MTR and Eastern command significant mindshare in South Indian households, with MTR celebrating over 100 years of culinary heritage. The brands enjoy high recall and loyalty, particularly for ready-to-eat products and spice blends.
Market Leadership: Orkla India holds leadership positions in key categories within South India, with Eastern dominating the Kerala market and MTR maintaining stronghold in Karnataka. The company distributes an average of 2.3 million units daily across India and exports to over 40 countries.
Margin Expansion: EBITDA margins improved by 220 basis points from FY2023 to FY2025, demonstrating operational leverage and pricing power. The company benefits from government incentives under India’s production-linked schemes, receiving ₹33 million in H1 2025.
Robust Distribution: The extensive network of nearly 2,700 distribution touchpoints combined with growing quick commerce penetration positions the company well for future growth.
Risk Factors
No Fresh Capital: The 100% offer-for-sale structure means zero funds flowing into the company for expansion, capacity addition, or debt reduction. Investors are essentially providing liquidity to existing shareholders rather than fueling growth initiatives.
Regional Concentration: Despite national ambitions, revenue remains heavily concentrated in South India, exposing the business to regional demand fluctuations. Breaking into North and West India presents significant competitive challenges against established players.
Currency Exposure: With 20% revenue from exports, the company faces forex volatility that can impact profitability. Operations span multiple currencies across UAE, Thailand, and Malaysia.
QIB Tepid Response: Low institutional investor participation (only 18% subscription) raises concerns about long-term institutional support post-listing. This could impact stock liquidity and price stability after listing.
Competitive Intensity: The FMCG sector witnesses fierce competition from giants like Tata Consumer Products, ITC, and regional players, putting pressure on market share and margins.
How to Check Allotment Status
Orkla India IPO allotment will be finalized on November 3, 2025. Investors can check their allotment status through the registrar KFin Technologies website using these steps:
- Visit the KFin Technologies IPO allotment page
- Select “Orkla India Limited” from the dropdown menu
- Enter your PAN number, application number, or DP Client ID
- Click “Submit” to view allotment status
Alternatively, check allotment through NSE or BSE websites using your application number. Allotted shares will be credited to demat accounts by November 4, 2025, with refunds initiated the same day for unsuccessful applicants.
Listing and Trading Details
Orkla India shares are scheduled to list on BSE and NSE on November 6, 2025. Based on the current GMP of ₹75, the stock may open around ₹805, representing a potential 10.3% premium to the issue price. However, actual listing prices depend on market conditions, sector sentiment, and overall equity market trends on listing day.
Anchor investors face a 30-day lock-in for 50% of their shares (ending December 3, 2025) and 90-day lock-in for the remaining 50% (ending February 1, 2026). This staggered unlocking mechanism helps stabilize post-listing price movements.
Comparison Table
| Parameter | Orkla India | Tata Consumer Products |
|---|---|---|
| Revenue FY25 | ₹2,395 crore | ₹17,618 crore |
| EBITDA Margin FY25 | 16.6% | ~14% |
| PAT Margin FY25 | 10.7% | ~9% |
| ROCE FY25 | 32.7% | 24.6% |
| P/E Ratio | ~39x | ~90x |
| Market Focus | South India | Pan-India |
| Key Brands | MTR, Eastern | Tata Tea, Tata Salt, Sampann |
| Export Revenue | 20.4% | Lower |
Expert Recommendation
Orkla India presents a mixed investment proposition. The company’s strong brand portfolio, improving margins, and reasonable valuation relative to peers offer appeal. However, the offer-for-sale structure, regional concentration, and lukewarm QIB response warrant caution.
For long-term investors seeking exposure to India’s growing packaged food sector with established brands, this IPO merits consideration. The 100-year-old MTR legacy combined with Eastern’s spice expertise provides a durable moat. However, those seeking aggressive growth stories fueled by expansion capital may find limited upside.
The modest GMP suggests realistic pricing rather than speculative excess, potentially offering stable rather than spectacular listing gains. Investors should evaluate their risk appetite, investment horizon, and portfolio allocation to FMCG stocks before applying.
Frequently Asked Questions (FAQs)
What is the minimum investment required for the Orkla India IPO?
The minimum investment is ₹14,600 for one lot of 20 shares at the upper price band of ₹730 per share.
How much discount do Orkla India employees get?
Orkla India employees receive a discount of ₹69 per share on the issue price.
What is the post-issue promoter holding in Orkla India?
After the IPO, promoter Orkla ASA’s stake will reduce from 90% to 75%, with the remaining 15% held by public shareholders including the Meeran family.
Does Orkla India have debt?
Orkla India maintains a healthy balance sheet with strong ROCE of 32.7%, indicating efficient capital utilization. The company declared ₹600 crore dividend in FY2025, suggesting comfortable cash flows.
Which banks are managing the Orkla India IPO?
The book running lead managers are ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital.
Can NRIs apply for Orkla India IPO?
Yes, NRIs can apply for Orkla India IPO on a repatriation and non-repatriation basis, subject to RBI and FEMA regulations. Check with your broker for specific application procedures.
What are Orkla India’s main competitors?
Key competitors include Tata Consumer Products, ITC Foods, Nestle India, Dabur, and regional players in the spices and ready-to-eat segments.
How can I check if I got Orkla India IPO allotment?
Visit KFin Technologies website, select Orkla India IPO, and enter your PAN, application number, or DP Client ID to check allotment status from November 3, 2025.
What percentage of revenue comes from exports?
Approximately 20.4% of Orkla India’s revenue comes from exports to over 40 countries, primarily in the Middle East, North America, and Southeast Asia.
Why is the QIB subscription low for the Orkla India IPO?
QIB subscription stood at only 18% as of Day 3 mid-day, possibly due to concerns over the 100% offer-for-sale structure, no fresh capital for growth, and valuations. Institutional investors typically prefer IPOs that fund expansion.
Featured Snippet Boxes
What is Orkla India IPO GMP today?
As of October 31, 2025, Orkla India IPO has a grey market premium (GMP) of ₹75 per share over the upper price band of ₹730, indicating a potential listing price of ₹805. This works out to about 10.3% expected listing gains.
What is Orkla India IPO subscription status?
Orkla India IPO was subscribed 4.95x overall by 11:30 AM on Day 3 (Oct 31). NIIs came in at 15.69x, retail at 3.06x, employees at 8.18x, while QIBs had taken up only 18% of their quota.
When will Orkla India IPO list?
Orkla India shares will list on NSE and BSE on November 6, 2025. The allotment will be finalized on November 3, and shares are expected to hit demat accounts by November 4, 2025.
What is the issue size of Orkla India IPO?
The Orkla India IPO is a ₹1,667.54 crore offer for sale of 2.28 crore equity shares in the ₹695–₹730 price band. There’s no fresh issue, so all proceeds go to the selling shareholders.
Who owns the MTR Foods brand?
MTR Foods is owned by Orkla India, which is a subsidiary of Norway’s Orkla ASA. Orkla bought MTR in 2007 and has grown it roughly seven-fold into a ₹1,000 crore business.
Should I apply for the Orkla India IPO?
Orkla India has well-known brands and improving margins at what looks like a reasonable valuation. That said, it’s a 100% offer for sale and the business is still region-heavy, which adds risk. Long-term FMCG investors may consider applying. Short-term investors should remember the GMP implies only about 10% listing upside.
