Orkla India IPO Review: GMP, Share Price, Valuation, Peer Comparison & More

Orkla India is a big food company known for famous brands like MTR and Eastern, especially in South India. Now, its parent company in Norway is selling a large stake through an IPO from October 29-31, 2025, worth ₹1,667 crore, all in an “offer for sale,” meaning only current owners are selling, and the company isn’t raising new money. The GMP is around ₹77 (about 10.5% above the price), but remember, GMP is just an unofficial signal and can change fast with the market.​

This blog will help you understand what Orkla India really does and how it makes money, where the IPO money goes, big strengths and risks to know, how it compares to rivals like Tata Consumer, key people leading the company, and who is selling shares. The big picture on the Indian packaged food industry-why now?

IPO Overview

• IPO Date: October 29 to October 31, 2025
• Total Issue Size: 1,667.54 crore
• Price Band: ₹695 to ₹730 per share
• Minimum Investment: ₹14,600
• Lot Size: 20 Shares
• Tentative Allotment Date: November 3, 2025
• Listing Date: November 6, 2025 (Tentative)
• GMP: The GMP for the Orkla India IPO is ₹77, reflecting a 10.5% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Orkla India Really Makes Its Money

Orkla India is all about selling ready-to-use food products that help people cook or eat faster, especially traditional South Indian meals.​

Spices: This refers to both mixed spice blends (like kitchen masalas) and single spices (like pure turmeric) with well-known brands.

Convenience Foods: Quick-make mixes for idli, dosa, soups, and desserts, plus ready-made meals you just heat and eat.

Imagine you want a classic South Indian breakfast but only have 10 minutes; their Rava Idli or Dosa Mix saves you the effort. They sell about 2.3 million packets every day!

How do they run this business?

• Buy raw ingredients like chillies and coriander from suppliers (mostly in India).
• Make food in their own 9 factories (mostly in South India) or through 18 partner factories in India and 3 abroad, focusing their own plants on special recipes, while outsourcing simpler products.
• Test and launch new ideas with a team of chefs (they were the first to sell Rava Idli mix).
• Distribute statewide through 834 distributors, 1,900 sub-distributors, 42 retail chains, and popular e-commerce platforms
• Export to 45 countries for Indians living abroad and anyone who likes Indian food
• The parent company, Orkla ASA from Norway, supports the brand with high standards and branding.

Objectives of the IPO

This IPO is 100% offer for sale, meaning that only existing company owners (mainly Orkla Asia Pacific, plus some local partners) are selling their shares to the public. No new money is going into the company.​

Main goal: Let promoters (the parent company) and local shareholders cash out a part of their current holdings, Orkla Asia Pacific is selling about 2.06 crore shares (worth ₹1,501 crore), and local partners Navas Meeran and Feroz Meeran are selling 11 lakh shares each (₹83 crore each).​

Share listing goal: By listing in India, Orkla India expects to boost its brand and give existing shareholders an official market to sell shares whenever they want.

None of the IPO money will be used for new projects, growth, or working capital—it all goes to selling shareholders directly.

Strengths:

• Big, Trusted Brands: Orkla India owns famous spice and food brands (MTR, Eastern) with a big following in South India. In Karnataka, their spices hold nearly a 39% share; in Kerala, about 31%, making them top names in those states.​
• Profitable and Efficient: Its profit margin is 10.7% for FY25, meaning for every ₹100 in sales, it keeps about ₹11 profit. Adjusted EBITDA margin is 16.6%, meaning after main costs, the company still has about ₹17 profit for every ₹100 in sales, before paying taxes and interest.
• Strong Return On Capital (ROCE): The ROCE is 32.7% (FY25), so for every ₹100 invested, the business earns about ₹33. That’s much higher than a big rival like Tata Consumer (which has about 25% ROCE).​
• Low Debt: It reduced borrowings from ₹35 crore in FY23 to zero in FY25, so the company owes nothing to banks or lenders now.​
• Steady Growth, Big Exports: Over ₹2,455 crore in revenue for FY25, up from ₹2,201 crore just two years earlier. Exports make up about 21% of revenues, bringing in money from 45 countries.​

Risks:

• Heavy Reliance on South India: 70%+ sales and almost all products are made in South India. If this region faces tough competition or economic slowdown, profits could drop quickly.
• Commodities Risk: Over 56% of expenses are for raw materials and packaging. If spice prices jump (like chilli, coriander, etc.), costs could spike, and they might not be able to raise their product prices fast enough.
• Supplier Dependence: The top 10 suppliers bring in about 34% of all ingredients. If just one has problems, production could get delayed or stop, hurting sales.
• Product Safety and Brand Risk: Another third-party restaurant chain uses the “MTR” name. If there’s bad news about food safety, even if unrelated to the packaged food company, consumer trust (and sales) could suffer.
• Low Use of Manufacturing Capacity: Their factories only run at about 46% of full capacity. That means higher costs per packet made, and profits could get hurt if they can’t use their factories more.
• Contingent Liabilities: They have ₹124.86 crore in possible indirect tax cases. If these go against the company, they’ll have to pay a big amount.

For detailed information, visit Orkla India’s IPO page.

Peer Comparison

As per the RHP, Orkla India’s listed peer is Tata Consumer.

Source: RHP, internal calculation

Orkla India has stronger margins and earns more per rupee invested. But Tata Consumer is much bigger, grows faster on the top line, and sells more abroad.

Orkla India’s Financial Performance

• Revenue: Grew from ₹2,201 crore in FY23 to ₹2,455 crore in FY25. Growth slowed in FY25, mostly because the company lowered prices when spice costs fell, passing savings to customers.
• Profits: Improved over time, with a profit of ₹255.7 crore in FY25 (up 13% from the previous year’s “normalized” profit). FY23 profits were higher, but mainly due to a special tax adjustment (not day-to-day operations).
• Margins: EBITDA margin (profit before taxes, interest) rose to 16.6% thanks to better cost management and selective outsourcing.
• No debt: Borrowings are now zero.
• Huge cash payout: Paid ₹600 crore as dividend in FY24 (big return to existing owners).
• Exports and new channels: Export sales are over ₹486 crore (about 21%), with e-commerce sales growing faster than regular shop sales.

Orkla India IPO Valuation - Is The IPO Price Reasonable?

At a price band of ₹695–₹730 per share, Orkla India’s valuation is about ₹10,000 crore.​

The price-to-earnings (P/E) ratio is 39x, meaning investors pay ₹39 for every ₹1 of profit. This is much lower than Tata Consumer’s 90x, but still counts as “expensive”.

Orkla’s high ROCE and profit margins can justify its valuation, but slow overall revenue growth and export risks mean it isn’t cheap by every measure.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Orkla India

• Orkla ASA: The biggest owner, based in Norway. It shifted focus to branded foods and consumer products (like MTR) and oversees operations with strict global standards.
• Chairman Atle Vidar Nagel Johansen: 31 years in food and marketing, with Orkla since 1993. Became chairman in 2015.
• MD & CEO Sanjay Sharma: Over 34 years in consumer brands, previously with Dabur and Colgate-Palmolive. Leads day-to-day strategy and is known for good leadership in fast-moving industries.
• CFO Suniana Calapa: Chartered Accountant with 25 years of finance expertise, joined in October 2023; oversees cost control and tech.
• Other board members: A diverse mix of Indian and international experts in food, finance, and consumer goods, including directors with global experience and notable accolades.

Who’s Making Money from the IPO?

The main seller is Orkla Asia Pacific Pte. Ltd. (the parent), selling about 2.06 crore shares (getting ₹1,501 crore). Its long-term stake means returns are high, over 6.6 times what it invested years ago. Other sellers include Navas Meeran and Feroz Meeran (local partners from the “Eastern” brand deal), who are each selling 11 lakh shares worth ₹83 crore each.

Industry Outlook

India’s packaged food market was worth over ₹10 lakh crore in FY24 and is set to grow almost 70% in the next five years.

Key drivers: More working women (workforce participation up from 23% in 2018 to 42% in 2024), rising middle class (more families earning over $10,000), and big digital growth with e-commerce now a major force.

Challenges: Raw material prices (like spices) can spike. Slowdowns could push shoppers toward cheaper alternatives, affecting sales. Food and safety regulations are strict, and any slip-up could be costly.

Analyst View

Orkla India has a strong “moat” in South Indian kitchens, strong brands, big margins, and zero debt. Its valuation is lower than big rivals, yet not “cheap” in a market that worries about slow growth and regional concentration. The biggest challenges are heavy dependence on one region, supplier risk, and not enough factory utilization. On the plus side, the company turns profits into cash reliably and returns money to shareholders. Because this IPO is only an OFS, no new money will help expand the business right now. So, if you’re considering this stock, weigh the brand and steady profits against regional dependence and sector risks.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Orkla India's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.