Archive · 29 Oct 2025
Orkla India IPO Opens: Price Band Set, Analysts Offer Mixed Views
Orkla India, the company behind well-known food brands like MTR and Eastern, has started selling shares to the public through an IPO.
This means people can now buy a piece of the company.
The price for each share is set between Rs 695 and Rs 730.
The IPO will be open for investors to apply from October 29 until October 31.
This is a special kind of IPO called an Offer for Sale, where the money from selling shares goes to the current owners, not to the company for new projects.
Orkla India has a wide range of popular food products and strong brands, especially in South India.
Some financial experts recommend investing in this IPO for the long term because of the company's strong brands and market position.
However, others suggest caution because it's a full sale of existing shares and they feel the price might be a bit high.
There's also a premium in the unofficial 'grey market', which shows that some people are already interested in buying these shares.
Orkla India's IPO, featuring brands like MTR and Eastern, opened on October 29 and will close on October 31.
The IPO is a complete Offer for Sale (OFS) aiming to raise ₹1,667.54 crore from existing shareholders.
The price band for the IPO is set between ₹695 and ₹730 per share.
The Grey Market Premium (GMP) for the IPO is reported to be between ₹75-80 per share.
Brokerage firms have mixed recommendations, with some suggesting 'subscribe' for long-term investors while others rate it 'Neutral' or advise caution due to the 100% OFS structure.
- Who
- Orkla India, a Bengaluru-based food company with brands like MTR Foods, Eastern Condiments, and Rasoi Magic.
- What
- Launched its Initial Public Offering (IPO) with a price band of Rs 695-730 per share, which is a 100% Offer for Sale (OFS).
- When
- IPO opened on October 29 and will close on October 31.
- Where
- India, with shares to be listed on BSE and NSE.
- Why
- To provide an exit opportunity for existing shareholders through a 100% OFS, aiming to raise Rs 1,667.54 crore.
Reasons to Subscribe
Reasons for Caution or Neutrality
Company Strength and Market Position
Reasons to Subscribe
Orkla India possesses market-leading brands like MTR and Eastern, a wide product range, strong market share in key regions, and a robust distribution network. Its financial performance is resilient with healthy return ratios, margins, and stable cash flows. The company is seen as capital efficient and virtually debt-free.
Reasons for Caution or Neutrality
The IPO is a 100% Offer for Sale (OFS), meaning no new capital is raised for the company's expansion, and existing shareholders are exiting. Some analysts find the valuations to be fully priced or fair, leading to a 'Neutral' rating.
Valuation and Growth Prospects
Reasons to Subscribe
The valuations, at a P/E of around 31.5-39 times for FY25/FY26 earnings, are considered justified by several brokers given the company's category leadership, innovation strategy, and long-term growth visibility in the FMCG sector. Positive sentiment and a grey market premium suggest potential listing gains.
Reasons for Caution or Neutrality
Some reviews caution that while the company has strong fundamentals, the IPO is fully priced. Potential risks include volatility in raw material pricing, supply chain interruptions, and operational challenges, which could adversely affect financial performance.
- Subscription Period
- Opens October 29 - October 31
- IPO Price Band
- Rs 695-730 per equity share
- Issue Size
- Rs 1,667.54 crore
- Offer Type
- 100% Offer for Sale (OFS)
- Grey Market Premium (GMP)
- Rs 75-80
- Company Valuation
- Over Rs 10,000 crore
- Lead Managers
- ICICI Securities, Citigroup Global Markets India, JP Morgan India, Kotak Mahindra Capital Company
- Registrar
- Kfin Technologies
Sources
MTR parent Orkla is going public—here’s what’s cooking behind the IPO
Orkla India IPO: Spicy potential or mild returns?
Orkla India raises ₹500 crore from anchor investors
Orkla India IPO opens today: From GMP, key risks to valuations, check 7 critical factors before you subscribe
Orkla India IPO GMP, Subscription Status LIVE: From GMP to allotment date, check key details here - IPO News
Orkla India IPO Day 1 LIVE: Issue opens today. Check GMP, review, key dates, issue details. Should you subscribe or not?
Orkla India IPO day 1: GMP, subscription status to review. Good or bad bet for investors?
