The Rs 1,667 crore initial public offering (IPO) of Orkla India is set to open for public subscription on Wednesday, October 29, 2025. The issue has been drawing strong interest in the grey market, though the premium has seen a slight decline ahead of the opening.
Grey Market Premium (GMP) Trends
As of October 28, the GMP for Orkla India’s IPO stood at Rs 106 per share, slightly down from Rs 114 previously. Based on the upper price band of Rs 730, this reflects an estimated listing price of around Rs 836, implying a potential listing gain of about 14.5% for investors.
While the marginal dip in GMP suggests a minor cooling of sentiment, analysts believe overall market interest remains solid, indicating healthy demand when the issue opens.
IPO details
The Orkla India IPO will open for public bidding on October 29, 2025, and remain available for subscription until October 31, 2025. Investors will have three days to participate in the issue.
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The total issue size is Rs 1,667.54 crore, making it one of the notable IPOs in the FMCG space this year. The offering comprises a 100% Offer for Sale (OFS), which means that existing shareholders are selling part of their stake in the company. Consequently, no new shares are being issued, and no fresh capital will be raised for the company itself.
Under this offer, a total of 2.28 crore equity shares will be made available to investors. The price band has been set between Rs 695 and Rs 730 per share, allowing investors to place bids within this range depending on their investment preference.
For retail investors, the minimum bid size is 20 shares per lot, translating to a minimum investment of Rs 14,600 at the upper end of the price band. Those wishing to invest more can apply in multiples of 20 shares.
Once the IPO process concludes, the shares are expected to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with a tentative listing date of November 6, 2025.
As the offering is a pure OFS, all the proceeds from the sale will go to the selling shareholders, primarily the promoter entities — Orkla ASA, Orkla Asia Holdings AS, and Orkla Asia Pacific Pte Ltd. This structure allows these promoter groups to partially monetize their holdings while maintaining the company’s current capital structure.
Company Overview
Orkla India is a prominent player in the Indian packaged foods market, owning well-known brands such as MTR Foods, Eastern Condiments, and Rasoi Magic. Its diverse product portfolio includes ready mixes, spices, beverages, and ready-to-eat meals.
With nine manufacturing plants across India and additional contract manufacturing operations in the UAE, Thailand, and Malaysia, Orkla India serves a vast network — selling over 2.3 million units daily across 28 states and 6 union territories, and exporting to 42 countries.
The company maintains a robust distribution base with 834 distributors and 1,888 sub-distributors, ensuring deep regional reach — particularly strong in southern India, where it leads several product categories.
Financial Performance
For the fiscal year ending March 2025, Orkla India posted revenue of Rs 2,455 crore, marking a 3% increase year-on-year. EBITDA stood at Rs 396 crore, reflecting a margin of 16.6%. The company’s profit after tax (PAT) grew 13% year-on-year to Rs 256 crore, resulting in a PAT margin of 10.7%. These results underscore Orkla India’s robust profitability and effective cost controls.
As of March 2025, Orkla India had a negligible debt level of just Rs 2 crore, making it virtually debt-free. The company reported a ROCE of 32.7% and RoNW of 13.8%, signaling efficient capital utilization and a strong return profile.
Valuation Snapshot : At the upper end of the price band (Rs 730), Orkla India’s IPO values the company at a P/E of 31.7x, with an estimated market capitalization of around Rs 10,000 crore. This valuation places it broadly in line with established FMCG players like Marico and Tata Consumer, though slightly below premium giants such as Nestlé India and Hindustan Unilever.
Growth Outlook: Industry experts view the IPO positively, citing rising urbanization, growing disposable incomes, and shifting consumer preferences toward branded packaged foods as major tailwinds. Orkla India’s focus on regional brands, product innovation, and strong distribution positions it well to capitalize on the sector’s long-term expansion.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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