MTR Foods-parent Orkla India is set to launch its initial public offering (IPO) on Wednesday, October 29 and the issue will close for bidding on Friday, October 31. The FMCG player is looking to raise a total of Rs 1,667.54 via its IPO by selling its shares for Rs 695-730 apiece with a lot size of 20 equity shares. The issue is entirely an offer-for-sale (OFS) of up to 2,28,43,004 equity shares.
Domestic brokerage firm SMIFS recently shared its report on Orkla India, after its site visit in Electronic City, Bengaluru. It has shared its glimpse into operations, strategy and vision for the company after interacting with top management of the company. In a nutshell, it sees long-term growth potential in the company. However, it has not given any ratings for the issue yet.
Bengaluru-headquarter Orkla India is a multi-category food manufacturing company engaged in the production of spices (blended and pure) and convenience foods (RTE & RTC) comprising a portfolio of over 400 products across the categories. It sells its products through 4 major brands in India- MTR, Eastern, Rasoi Magic, and Laban
It is one of the 10 portfolio companies of Orkla ASA, an industrial investment company headquartered in Oslo Norway. In FY25, Orkla India’s sales growth was impacted by a sharp decline in chilli prices and subdued consumer demand due to inflation in key food items.
Despite this, the company’s Ebitda margin improved to over 15 per cent on the back of softening of raw material costs and operational efficiencies along with the reduction in working capital days, said SMIFS. “Management remains optimistic, citing a strong balance sheet, improving demand trends in Q1FY26, and the positive impact of recent GST rate cuts on RTC and RTE categories.”
With organized players covering only 40 per cent of the Indian food market, the company sees significant long-term growth potential. According to the management, there are early signs of revival in consumer sentiment with high single-digit volume growth recorded in Q1FY26, it said.
“Around 70 per cent of Orkla India’s revenue comes from South India, where it caters to 225 million people that contribute 30 per cent to the total GDP of India. Even being the leading player in Karnataka, per capita consumption of Orkla India’s products in that region is Rs. 110. The management sees this as an opportunity to increase penetration in its core geographies,” SMIFS added.
Orkla India reported a net profit of Rs 78.92 crore with a revenue of Rs 605.38 crore for the three-months ended on June 30, 2025. The company clocked a net profit of Rs 255.69 crore with a revenue of Rs 2,455.24 crore for the financial year 2024-25. At the current valuations, the company is commanding a total market capitalization of Rs 10,000 crore.
At the current levels, Orkla India has a PAT margin of 10.7 per cent, while its return on net worth (RoNW) stands at 13.8 per cent, which is nearly double than Tata Consumer Products. Its return on capital employed (RoCE) stands at 32.7 per cent. Last heard, it was commanding a grey market premium (GMP) of Rs 70-75 apiece, suggesting around 10 per cent gains for the investors.
ICICI Securities,. Citigroup Global Markets India, JP Morgan India and Kotak Mahindra Capital are the book running lead managers of the Orkla India IP, while Kfin Technologies has been appointed as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Thursday, November 06.
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