Abhishek Sinha
The initial public offering (IPO) of Orkla India Ltd, the maker of popular Indian food brands MTR and Eastern, opened for public subscription on October 29 and was 27% subscribed as of 11:15 AM, market data showed.
The IPO, which will remain open until October 31, is entirely an Offer for Sale (OFS) of 2.28 crore shares by promoters and shareholders. The price band has been fixed at ₹695–₹730 per share, valuing the company at around ₹10,000 crore at the upper end.
According to market observers, the Orkla India IPO grey market premium (GMP) stands at ₹77–₹84, indicating a potential listing gain of about 11% over the upper price band.
IPO Details
- Issue type: 100% Offer for Sale (OFS)
- Price band: ₹695–₹730 per share
- Lot size: Not specified
- Subscription period: October 29–31, 2025
- Tentative listing date: November 6, 2025
- Expected valuation: ₹10,000 crore
The promoters, Orkla Asia Pacific Pte Ltd and Orkla ASA (Norway), currently hold a 90% stake in the company, while Navas Meeran and Feroz Meeran each own 5%. Post-listing, promoter holdings will reduce proportionately, and all sale proceeds will go to selling shareholders since there is no fresh issue component.
Company Overview
Formerly known as MTR Foods, Orkla India manufactures and markets products under the MTR, Rasoi Magic, and Eastern brands.
Its product range includes spices, masalas, ready-to-eat meals, sweets, beverages, and breakfast mixes.
Recently, the company also entered the Pan-Asian cuisine segment through its new brand ‘Wok N Roll’.
The company has a robust distribution network of 834 distributors and 1,888 sub-distributors across 28 states and 6 union territories, along with partnerships with 42 modern trade and 6 e-commerce platforms.
Key Strategies
- Increase household penetration in core markets.
- Expand exports targeting the global Indian diaspora.
- Broaden product portfolio through innovation and acquisitions.
- Improve margins through operational efficiency.
- Strengthen presence in adjacent food categories.
Parentage and Global Backing
The company benefits from strong parentage under Orkla ASA, a Norwegian FMCG and consumer goods conglomerate operating in 100+ countries. Orkla ASA acquired MTR Foods in 2007 and later Eastern Condiments in 2021.
Its global network provides Orkla India access to Orkla ASA’s Centres of Excellence in food safety, sustainability, innovation, and technology.
Valuation and Expert View
At the upper price band of ₹730, the IPO seeks a P/E ratio of around 31.7x FY26 earnings, which analysts view as fairly valued considering its strong brand equity and market leadership in the Indian packaged food space.
Rajan Shinde, Research Analyst, Mehta Equities Ltd, said:
“The valuation appears reasonable given Orkla India’s dominant regional presence and diversified portfolio. Despite being a full OFS, the company is well placed in India’s fast-growing packaged food market. We recommend a ‘Subscribe’ rating for long-term investors.”
Peer Comparison
According to the company’s red herring prospectus, Tata Consumer Products Ltd is the closest listed peer, trading at a P/E of 90.1x — much higher than Orkla’s implied multiple.
Lead Managers & Registrar
- Book Running Lead Managers: ICICI Securities, JP Morgan India, Kotak Mahindra Capital, Citigroup Global Markets India
- Registrar: KFin Technologies
IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | October 29, 2025 |
| IPO Closes | October 31, 2025 |
| Allotment Finalisation | November 3, 2025 |
| Refunds Initiated / Shares Credited | November 4, 2025 |
| Listing on NSE & BSE | November 6, 2025 |
Bottom Line
With strong parent backing, market leadership in the spice and packaged food segment, and an expansive distribution network, Orkla India’s IPO has attracted early interest.
However, investors should note that the issue is entirely an Offer for Sale, meaning no fresh capital will flow to the company.
