MTR Foods owner Orkla India’s IPO to open next week; GMP inching higher. 10 things to know

Orkla India, the Indian arm of Norway-based Orkla ASA, is coming out with a Rs 1,667-crore initial public offering (IPO) that opens for subscription on October 29 and closes on October 31. The stock will list on both NSE and BSE, tentatively on November 6. The issue has generated buzz in the grey market, where it commands a GMP (grey market premium) of around 8%, signalling moderate listing optimism.

Here are 10 things investors should know before applying:

1) Entirely an Offer for Sale (OFS)

The IPO is a pure offer for sale of 2.28 crore equity shares, aggregating to Rs 1,667.54 crore. No fresh funds are being raised, which means the proceeds will go to the selling shareholders, primarily the promoter entities — Orkla ASA, Orkla Asia Holdings AS, and Orkla Asia Pacific Pte Ltd.

2) Price Band and Lot Size

The company has fixed a price band of Rs 695–730 per share, with a minimum lot size of 20 shares, translating to a minimum investment of Rs 14,600 for retail investors.

3) Strong Brand Portfolio: MTR, Eastern, Rasoi Magic

Orkla India owns several household brands such as MTR Foods, Eastern Condiments, and Rasoi Magic, making it a formidable player in the Indian packaged foods space. Its product range spans breakfast mixes, spices, ready-to-eat meals, and beverages.

4) Large-Scale Operations

The company operates nine manufacturing units across India and also uses contract facilities in the UAE, Thailand, and Malaysia. It sells over 2.3 million units daily across 28 states and 6 union territories, exporting to 42 countries.

5) Market Leadership and Distribution

Orkla India is a category leader in southern India and is expanding nationally. Its distribution network includes 834 distributors and 1,888 sub-distributors, giving it deep regional penetration and strong control over supply chains.

6) Financial Performance

For FY25, the company reported revenue of Rs 2,455 crore, up 3% YoY, and profit after tax of Rs 256 crore, up 13% YoY. EBITDA stood at Rs 396 crore, implying healthy margins of 16.6%, while PAT margin was 10.7%.

7) Asset-Light, Debt-Free Business

As of March 2025, Orkla India had minimal borrowings (Rs 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.

8) Valuations and Market Cap

At the upper end of the price band, the IPO values the company at a P/E of 31.7x post-issue and a market capitalisation of about Rs 10,000 crore. This is broadly in line with other FMCG peers like Marico and Tata Consumer, though at a slight discount to premium names such as Nestle India and Hindustan Unilever.

9) GMP and Listing Outlook

The issue’s GMP of Rs 55–60 suggests a potential 8% listing gain, with shares expected to debut around Rs 785–790 if sentiment remains steady.

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10) FMCG Demand Tailwinds

Analysts see a long-term opportunity as packaged food consumption in India rises amid urbanisation and convenience-led lifestyles. Orkla’s focus on value-added regional brands and category innovation is expected to keep growth steady.