Orkla India Ltd IPO – Mainboard
Orkla India Ltd, formerly known for the heritage brands MTR and Eastern, is the Indian food subsidiary of Norwegian conglomerate Orkla ASA. The company specializes in packaged spices, masalas, ready-to-cook meals, convenience foods, and mixes under more than 400 SKUs. Its products are sold in South India and in over 40 export markets, supported by manufacturing facilities in India and Southeast Asia (Thailand, UAE, Malaysia).
READ FULL DRHP HERE |SEBI DRHP ORKLA|
IPO Details
| Detail | Information |
|---|---|
| IPO Opening | 29 October 2025 |
| IPO Closing | 31 October 2025 |
| Price Band | ₹695 – ₹730 per share |
| Minimum Lot | 20 shares (₹14,600 at upper band) |
| Issue Size | ₹1,667.5 crore (100% Offer For Sale, 2.28 crore shares) |
| Face Value | ₹5 |
| Listing | 6 November 2025 (BSE, NSE) |
| Anchor Invest. | Tata MF, HDFC MF, BlackRock, others |
| Registrar | CLICK HERE |
Use of Funds:
All proceeds will go to the selling shareholders (Orkla Asia Pacific, founding families); the company itself receives no funds, as this is a pure OFS.
Key Financials
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,172 | 2,359 | 2,455 |
| EBITDA (₹ Cr) | 311 | 341 | 396 |
| EBITDA margin | 14.3% | 14.5% | 16.1% |
| Net Profit (₹ Cr) | 163 | 213 | 256 |
| PAT margin | 7.5% | 9.0% | 10.4% |
| Return on Equity | 9% | ~12% | ~16.8% |
| OCF (₹ Cr) | 190 | 237 | 392 |
| P/E (post-IPO) | – | – | 38–39x |
Analysis:
- Steady Revenue Growth: 5.9% CAGR (FY23–FY25), with robust growth in exports and southern India core markets.
- Improved Margins: EBITDA and PAT margins have expanded steadily, aided by product mix shift and operational efficiency gains.
- Cash Generation: Operating cash flow doubled from FY23 to FY25; company remains debt-light.
- Exports: ~21% of revenue from outside India (GCC, US, Africa).
Business and Strategic Overview
- Brands: Owns iconic brands MTR, Eastern, Rasoi Magic — leaders in South Indian foods, spices, and ready mixes.
- Distribution: 834 distributors, 1,888 sub-distributors across 28 states, 6 UTs, plus online and international partners.
- Production: 9 manufacturing facilities in India, 3 overseas contract plants.
- Product Mix: Breakfast mixes, masalas, base gravies, cooking aids, beverages, desserts; SKU innovation and premiumization drive margins.
- Regional Strength: Leadership in South India with ambitions for greater North/West market penetration.
- **Digital & Export: Growth in e-commerce, QSR, and B2B channels complement traditional retail.
Why do some investors like this ipo?
- Heritage Brands: Loyal customer base and strong recall for flagship portfolios.
- Operational Efficiency: Automated manufacturing, efficient supply chain, and high capital productivity.
- Diversification: Multi-category foods portfolio reduces reliance on any single segment.
- Global Parent: Technology and R&D transfer from Orkla ASA.
Cautions and Risks
- Raw/Packaging Price Sensitivity: Over 56% of expenses are from key inputs. Commodity and FX swings (especially on imports) directly impact EBITDA.
- Supplier Concentration: Top 10 suppliers contributed ~34% of sourcing in FY25; disruption or quality issues pose a material risk.
- Export Risk: Regulatory changes and currency volatility can affect overseas profit, as 20%+ of sales are exports.
- Growth Momentum: Revenue and profit growth, while steady, has not accelerated rapidly compared to high-growth FMCG peers; 3-year compounded growth rates are mid-single digit.
- No Fresh Funds: Pure OFS (100%—company receives no proceeds). All proceeds go to Orkla/founders, so no direct funding for new factory, distribution, or acquisitions.
- Third-party Brand Use: Restaurant chain using MTR brand — any negative news about the chain can affect Orkla India’s brand equity.
- Valuation: At ₹730, P/E is about 38–39x FY25 earnings — moderate relative to Tata Consumer, lower than Nestlé, but above sector median for growth.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.