Orkla India IPO Opens Tomorrow: Check Key Details, Financials, Risks and Strengths from RHP

Bengaluru, 28 Oct 2025:  Orkla India Limited, the parent company behind popular packaged food brands MTR and Eastern, is set to launch its initial public offering (IPO) on October 29, 2025. The issue will remain open until October 31, 2025, with a price band of ₹695–₹730 per share and aims to raise ₹1,668 crore.

Orkla India Limited (formerly MTR Foods Pvt. Ltd.) is a packaged food company based in Bengaluru, part of Norway’s Orkla ASA Group. The company has made a name for itself with its MTR and Eastern brands by offering customers more than 400 products across the spices, ready-to-cook (RTC), ready-to-eat (RTE), beverage, and breakfast mix categories.

It is present in 45 countries, contributes 20.6% of FY25 revenues from exports, and has 9 owned plants in Karnataka, Kerala, and Andhra Pradesh, as well as 21 contract manufacturing units in India and overseas.

Orkla India IPO Key Details

The subscription window for the Orkla India Limited IPO will run from October 29 to 31, 2025, with a lot size of 20 shares, amounting to ₹14,600 at the upper price band. The ₹1,668 crore Offer for Sale (OFS) will be listed on the NSE and BSE on November 6, 2025. The anchor investor allocation is scheduled for October 28, followed by the share allotment on November 3, 2025.

Orkla India Financial Highlights (as per RHP)

Based on the RHP, Orkla India has shown sustained growth, with Q1 FY26 revenue of ₹5,970 million and PAT of ₹789 million. Between FY22 and FY25, EBITDA and PAT grew 18.6% and 29.7% CAGR, respectively, due to strong export and cost efficiency improvements.

Orkla India Key Strengths From RHP

• Strong Market Leadership in Spices: The Company is a leading packaged spice brand in Karnataka, with market shares of 31.2% and 41.8% in Kerala, respectively. Its dual-brand strategy (MTR & Eastern) enhances market penetration to create strong brand loyalty.
• Its Market Portfolio is Diversified: It has created an optimal mix of revenue between Spices (66%) and Convenience Foods (34%), covering all meal occasions.
• Operational Effectiveness: The working capital cycle for FY25 is 21 days, with an ROCE of 32.7%, indicating excellent asset efficiency.
• Export Presence: The company operates in 45 countries, including North America, the GCC, and Southeast Asia.
• Strong Parental Support: Orkla ASA supports the company; it is a global FMCG giant from Norway with more than 370 years of experience in global governance, R&D, and brand building.

Orkla India Risks from RHP

• Commodity Price Volatility: The company spends more than 50% of its raw-material costs (e.g., chilli, turmeric, and coriander); changes in their prices could affect profitability.
• Regulatory Scrutiny: The company has 124 FSSAI-related proceedings, mostly related to labelling and acceptable levels of pesticide residues.
• Regional Concentration: 70% of sales come from South India, exposing the company to regional demand risk.
• No Fresh Issue: This entire issue is an offer for sale, meaning the proceeds from the IPO will go to the selling shareholders, not the company.
• High Competition: Competes against other companies such as Everest, MDH, Tata Consumer and Catch, as well as many local brands.

Strategic Outlook

Orkla India intends to bolster its presence across the country by expansion in North and West India, increasing its exports, and delivering healthier, ready-to-cook innovations. With Orkla ASA’s know-how and capital discipline, the company is well-positioned to capitalise on the 10.8% CAGR of the packaged food market in India, which is projected to exceed ₹10.2 lakh crore in FY24.

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