The highly anticipated Orkla India IPO, the company behind iconic Indian spice and condiment brands MTR and Eastern, is gearing up to make its debut on the Indian primary market later this week. The offering has already generated strong buzz among investors eager to participate in India’s rapidly expanding packaged food sector.
IPO Price Band and Valuation
Orkla India has set its IPO price band between ₹695 and ₹730 per share, valuing the company at around ₹10,000 crore at the upper end. This valuation underscores the brand’s strong market presence and the consistent growth trajectory it has demonstrated over the past few years.
IPO Timeline: Key Dates to Remember
The Orkla India IPO will open for subscription on October 29 and close on October 31, 2025. Following the bidding period, the company’s shares are scheduled to be listed on the stock exchanges on November 6, 2025, marking a major milestone in its growth journey.
IPO Structure and Offer Details
The issue is structured as a complete Offer for Sale (OFS) of up to 22,843,004 shares, where the proceeds will go directly to the promoter and existing shareholders rather than the company itself. This means Orkla India will not receive any funds from this issue, which is valued at approximately ₹1,667 crore.
Financial Highlights: A Glimpse into Performance
Orkla India’s financial performance reflects consistent growth and resilience. For FY25, the company reported a 1.6% year-on-year increase in revenue to ₹2,394.7 crore. Meanwhile, its profit rose by 12.9% YoY, climbing from ₹226.33 crore in FY24 to ₹255.69 crore in FY25. This steady upward trajectory highlights Orkla India’s operational efficiency and robust market demand.
Peer Comparison: Standing Among Giants
In the listed space, Tata Consumer Products stands as Orkla India’s closest peer. While Tata Consumer boasts a significantly higher total income, Orkla outperforms in earnings per share (EPS), which stands at ₹18.7, compared to Tata Consumer’s ₹13.1. The latter currently trades at a P/E ratio of 90.1x, providing a potential valuation benchmark for investors assessing Orkla’s IPO.
Industry Outlook: India’s Packaged Food Market on the Rise
According to the Technopak Report, India’s packaged food market reached an estimated value of ₹10,180 billion in FY2024, growing at a CAGR of 10.8% since FY2019. The report also highlights India’s commanding role in the global spice industry, contributing around 70% of global spice production by volume and 43% of global spice exports by value in FY2024. This strong industry backdrop reinforces Orkla’s strategic position in the sector.
About Orkla India: A Legacy of Flavor and Innovation
Orkla India is a multi-category food company with a diverse portfolio covering meals throughout the day—from breakfast and lunch to snacks, beverages, and desserts. With a legacy spanning several decades, the company is recognized among the top four players in the Indian spices and convenience food market based on FY2024 revenues.
Distribution Strength: A Nationwide Network
The company boasts a wide distribution network encompassing 834 distributors and 1,888 sub-distributors across 28 states and six union territories, supported by 42 modern trade partners and six e-commerce and quick-commerce platforms. Notably, Orkla’s flagship brands MTR and Eastern dominate the retail spice markets of Karnataka and Kerala, being present in 67.5% and 70.4% of spice-selling outlets respectively—well above the industry average of 30–40%.
Manufacturing Capabilities and Global Reach
As of June 30, 2025, Orkla India operated nine manufacturing facilities across four states in South India and maintained 21 contract manufacturing partnerships—18 within India and 3 overseas. This strong production backbone supports its scalability and ensures consistent supply to both domestic and international markets.
Key Risks: Supply Chain and Price Volatility
Despite its strong fundamentals, the company faces certain operational risks. A significant portion of raw materials is sourced from a limited group of suppliers—the top ten suppliers accounted for 37.9% of total purchases during the first quarter of FY26. Any disruption in this supply chain or volatility in the prices of raw and packaging materials could impact the company’s profitability and cash flow.
Lead Managers and Registrar
The IPO will be managed by leading investment banks including ICICI Securities, Citi, JP Morgan, and Kotak Mahindra Capital, while KFin Technologies serves as the registrar to the issue. Their combined expertise is expected to ensure a seamless and transparent listing process.
Conclusion
With a robust brand legacy, solid financials, and strong industry positioning, Orkla India’s IPO presents a compelling opportunity for investors seeking exposure to India’s growing packaged food and spice market. However, potential investors should also consider the inherent risks tied to supplier dependencies and raw material price fluctuations before making an investment decision.
Related posts:
Women's population will increase rapidly in India, government released report
Sunil Shetty's son Ahan Shetty will be seen in 'Border 2'
AP TET Hall Ticket 2024 released at aptet.apcfss.in, download link here
Delhi Air Pollution Turns Severe, GRAP 3 Activated
OpenAI CEO Sam Altman denies link between executive departures and restructuring plans
3I/ATLAS: The Interstellar Visitor Passing Earth Safely
About the Author
