Orkla India IPO Opens For Subscription Today: 10 Key Things To Know Before You Bid — Read Anand Rathi's Report

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Anand Rathi Report

Here are the 10 things to know before investing

1. Orkla India Ltd., a multi-category Indian food company and the owner of spices, convenience foods and condiments brands MTR and Eastern, will launch its initial public offering today and will conclude on Oct. 31.

2. The company has fixed the price band in the range of Rs 695 to Rs 730 per equity share.

3. Investors can place bids starting from a minimum of 20 shares and in multiples thereafter.

4. The Rs 1,668-crore IPO comprises of only an offer for sale of 2.28 crore shares.

5. Since it is an OFS, the company will not receive any proceeds from the IPO, and the entire amount of money will go to the selling shareholders.

6. ICICI Securities Ltd., Citigroup Global Markets India Pvt., J.P. Morgan India Pvt., and Kotak Mahindra Capital Co. are the lead book running managers to the IPO while KFin Technologies is the registrar to the offer.

7. Strengths:

   Category market leader with the ability to build and scale household food brands through an in-depth understanding of local consumer tastes.

   Multi-category food company with a focus on product innovation.

   Extensive distribution infrastructure with deep regional network and wide global reach.

   Efficient, large-scale manufacturing with stringent quality control and a robust supply chain.

8. Key Strategies:

   Drive household penetration and usage of their products in core markets.

   Expand presence in international markets through a robust growth strategy.

   Selectively expand product portfolio to strengthen and extend their core offerings.

   Strategically acquire leading brands and businesses.

9. Key Risk:

   Company’s operations are subject to volatility in the pricing of raw materials and packaging materials. Thier inability to procure the raw materials and packaging material, at competitive prices, may adversely affect the business, financial condition, cash flows and results of operations.

   The improper processing or storage of their products or raw materials, or spoilage of and damage to such products or raw materials, or any real or perceived contamination in their products or raw materials, could subject them to regulatory action, damage their reputation and have an adverse effect on business, financial condition, cash flows and results of operations.

   Any slowdown or interruption to their manufacturing operations or under-utilisation of their existing or future manufacturing facilities may have an adverse impact on their business and financial performance.

   Company is dependent on their suppliers (their top ten suppliers contributed to 37.9% in the three months ended June 30, 2025 and 33.7% of total purchases in Fiscal 2025) for raw materials. Any loss of suppliers or interruptions in the timely delivery of supplies could have an adverse impact on their business, financial condition, cash flows and results of operations.

   A third-party owned and operated restaurant chain has the right to use the trade name “MTR” for its business operations and any negative publicity or quality issues associated with the restaurant chain may adversely affect their business, financial condition, cash flows and results of operations.

   Company’s inability to expand or effectively manage their growing base of distributors or retailers may have an adverse effect on business, financial condition, cash flows and results of operations.

10. Valuation

Orkla India is a leading multi-category food company with a strong capability in building and scaling trusted household brands. The company leverages deep understanding of regional tastes and culinary cultures to offer products suited to local preferences.

It has an extensive distribution network across India and growing global presence, ensuring strong market reach. Orkla India operates modern, large-scale manufacturing facilities with robust quality and supply chain systems.

Its strategy is driven by continuous innovation, category expansion and premiumisation, reinforcing its position as a market leader in India’s packaged food industry.

At the upper price band company is valuing at P/E of 31.5x to its FY26 annualized earnings and market cap of Rs 1,00,000 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO.

Click on the attachment to read the full IPO report:

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