Orkla India's ₹1,667cr IPO to launch on October 29
What's the story
Norway-based Orkla ASA's Indian subsidiary, Orkla India, is gearing up for a ₹1,667 crore initial public offering (IPO). The offer will open on October 29 and close on October 31. The company's shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on November 6. In the gray market, the issue has garnered attention with a gray market premium (GMP) of around 8%, indicating moderate listing optimism.
Offer specifics
Offer for sale of 2.28 crore equity shares
The upcoming IPO is a pure offer for sale of 2.28 crore equity shares, totaling ₹1,667.54 crore. No fresh capital is being raised as the proceeds will go to selling shareholders, mainly promoter entities like Orkla ASA, Orkla Asia Holdings AS, and Orkla Asia Pacific Pte Ltd. The company has set a price band of ₹695-730 per share with a minimum lot size of 20 shares or an investment of at least ₹14,600 for retail investors.
Business overview
Leading player in Indian packaged foods industry
Orkla India is a leading player in the Indian packaged foods industry with popular brands like MTR Foods, Eastern Condiments, and Rasoi Magic. The company has nine manufacturing units in India and contract facilities in UAE, Thailand, and Malaysia. It sells over 2.3 million units daily across 28 states and six union territories while exporting to 42 countries.
Market reach
Strong distribution network and healthy financials
Orkla India has a strong distribution network with 834 distributors and 1,888 sub-distributors. The company reported a revenue of ₹2,455 crore for FY25, up 3% YoY, with a profit after tax of ₹256 crore (up 13% YoY). Its EBITDA stood at ₹396 crore implying healthy margins of 16.6%, while PAT margin was at 10.7%.
Financial health
Debt-free status and efficient capital usage
As of March 2025, Orkla India had minimal borrowings (₹2 crore), making it nearly debt-free. Its return on capital employed (ROCE) stood at 32.7%, and return on net worth (RoNW) at 13.8%, highlighting efficient capital usage. At the upper end of the price band, the IPO values the company at a post-issue P/E of 31.7x and a market cap of about ₹10,000 crore.
Future prospects
Analysts see a long-term opportunity
The issue's GMP of ₹55-60 indicates an 8% listing gain, with shares likely to debut at around ₹785-790 if sentiment remains steady. Analysts see a long-term opportunity as packaged food consumption in India rises amid urbanization and convenience-led lifestyles. Orkla's focus on value-added regional brands and category innovation is expected to keep growth steady.