Orkla India IPO
Orkla India IPO Price Range is ₹695 - ₹730, with a minimum investment of ₹14,600 for 20 shares per lot.
Subscription Rate
0.79x
as on 29 Oct 2025, 07:34PM IST
Minimum Investment
₹14,600
/ 20 shares
IPO Status
Live
Price Band
₹695 - ₹730
Bidding Dates
Oct 29, 2025 - Oct 31, 2025
Issue Size
₹1,667.54 Cr
Lot Size
20 shares
Min Investment
₹14,600
Listing Exchange
BSE
IPO Doc
Orkla India IPO Application Timeline
Objectives of IPO
- The company's IPO is structured entirely as an offer for sale (OFS), comprising up to 2.28 crore equity shares, aggregating up to ₹1,667.54 crore. Since the IPO is exclusively an Offer for Sale, the company will not receive any proceeds from the Offer.
- One of the key objectives of the IPO is to carry out the offer for sale. The primary selling shareholder is the promoter, Orkla Asia Pacific Pte. Ltd., offering up to 2.06 crore shares. Other selling shareholders participating include Navas Meeran and Feroz Meeran, each offering up to 11 lakh shares.
- Additionally, the company expects that listing the equity shares on the Stock Exchanges (BSE and NSE) will enhance its visibility and brand image, while also providing liquidity and a public market for the Equity Shares in India.
Financial Performance of Orkla India
The company has exhibited resilient top-line growth and substantial profitability improvements over the last three fiscals. Revenue from operations increased at a 5.6% CAGR, growing from ₹2,201.4 crore in FY23 to ₹2,455.2 crore in FY25. The lower growth rate of 1.6% in FY25, compared to 8.4% in FY24, occurred because the company intentionally passed on the decline in the cost of key raw materials, such as chili and other spices, to consumers, which reduced the price realized on sales.
Operational efficiency also increased, with the Adjusted EBITDA margin consistently expanding from 14.4% in FY23 to 16.6% in FY25. This margin improvement was primarily achieved due to a 10.4% decrease in the cost of raw materials consumed in FY25, coupled with effective cost management practices like process optimization and selective outsourcing of lower value-added products.
The profit displayed volatility, particularly due to the FY23 profit of ₹339.1 crore. This high figure was inflated by a large one-time deferred tax credit of ₹82.22 crore, resulting from the merger of Eastern Condiments Private Limited (ECPL). Nevertheless, profit subsequently increased by 13% in FY25, reaching ₹255.7 crore, driven by better margins and cost control.
Regarding the balance sheet, total borrowings were aggressively reduced from ₹35 crore in FY23 to nil in FY25. The subsequent decline in total assets from ₹3,375.2 crore in FY24 to ₹3,171.3 crore in FY25 was associated with a significant dividend payout of ₹600.01 crore to shareholders in the latter year.
This strong performance carried into Q1 FY26, where revenue grew by 5.25% year-on-year due to 8.5% consolidated volume growth, and PAT increased by 9.78%, showing sustained operational momentum.
Strengths and Risks
Strengths
It maintains a capital-efficient model, significantly expanding its Adjusted EBITDA margin from 14.4% in FY23 to 16.6% in FY25. Profit also increased by 13% (₹255.69 crore) year-on-year in FY25.
The return on capital employed (ROCE) shows strong gains, accelerating from 20.7% in FY24 to 32.7% in FY25. This highlights effective earnings generation from capital usage.
It executed a significant shift in its capital structure, reducing total borrowings from ₹34.99 crore in FY23 to ₹0 in FY25, while simultaneously distributing a substantial dividend of ₹600.01 crore to shareholders in FY24.
It holds a strong competitive stance, ranking as one of the top four companies by revenue among industry peers in FY24. Its brands possess significant market shares in South India's packaged spices market.
The company demonstrates robust operational efficiency through optimized working capital, significantly reducing trade working capital days from 36.3 days in FY23 to just 21.4 days in FY25.
It has successfully leveraged its brand equity to serve the Indian diaspora and now exports products to 45 countries as of June 30, 2025. Export revenue constituted 20.6% (₹486.17 crore) of sales in FY25.
Its cash conversion capacity is improving steadily from 85% in FY23 to 124.8% in FY25. This indicates that operating profits are effectively translating into actual net cash flow.
Risks
Operations are heavily reliant on South India, which generated 70.2% (₹1,655.41 crore) of total sales in FY25. Furthermore, 94.2% of its product volume in FY25 was manufactured in the region.
The business is exposed to high risks from fluctuating prices of agricultural commodities and packaging materials. The cost of raw materials and packaging consumed was a substantial 56.8% of total expenses in FY25.
It faces reliance risk as its top ten suppliers accounted for a significant 33.7% (₹447.91 crore) of total purchases in FY25. Loss of any one could disrupt production severely.
The entire IPO money will be cashed out by selling shareholders as part of the offer for sale. The company won’t receive any of the IPO funds for its growth or expansion.
Reliance on external manufacturers is increasing; sales from contract facilities rose to 13.8% of total sales in Q1 FY26, up from 4.7% in FY24. Termination of these agreements poses a growing operational risk.
Despite having an installed capacity of 1.82 lakh (182,270) TPA, actual capacity utilization remains low at 45.9% in FY25 and 46% in Q1 FY26. This prolonged under-utilization risks higher fixed costs per unit, eroding overall profitability and future financial performance.
It has material contingent liabilities that have not been provisioned for, totaling ₹124.86 crore, related to indirect taxation as of June 30, 2025. If these materialize, they would negatively affect its financial position.
How to Apply for Orkla India IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Orkla India IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Orkla India
Company | Operating Revenue | Adjusted EBITDA margin | Profit | ROCE | P/E Ratio (x) | Trade working capital days | Cash conversion |
Orkla India | ₹2,394.71 Cr | 16.60% | ₹255.69 Cr | 32.70% | 39.04 | 21.4 days | 124.80% |
₹17,618.30 Cr | 13.50% | ₹1,287.10 Cr | 24.60% | 90.1 | 21.1 days | 105.50% |
Orkla India Shareholding Pattern
| Promoters | 90% | |
| Name | Role | Stakeholding |
| Orkla Asia Pacific Pte. Ltd. | Promoter | 90% |
| Public | 10% | |
| Name | Role | Stakeholding |
| Navas Meeran | Public | 5% |
| Feroz Meeran | Public | 5% |
About Orkla India
The company's target customers are general consumers seeking authentic regional flavors, primarily within its core markets of South India (Karnataka, Kerala, Andhra Pradesh, and Telangana). It also focuses significantly on international markets, catering to the Indian diaspora by exporting products to 45 countries as of June 30, 2025, with a focus on geographies like GCC, USA, and Canada. The operational scale is extensive, managed by 2,586 permanent employees. Distribution relies on a network of 834 distributors and 1,888 sub-distributors across 28 states and six union territories in India. It sells approximately 23 lakh units on average every day as of June 30, 2025. The distribution network also includes associations with 42 modern trade retail chains and six e-commerce and quick commerce platforms.
The company's value chain focuses on efficient manufacturing and distribution, capitalizing on proprietary recipes and South Indian culinary heritage. Manufacturing utilizes nine owned facilities with 182,270 TPA capacity, supplemented by 18 contract manufacturers in India. Its strategy balances producing high-value products in-house while outsourcing lower-value categories for better cost efficiency. General trade remains the largest channel, contributing 77.1% of domestic sales in the three months ended June 30, 2025, though growth is faster in e-commerce and quick commerce channels. Going forward, the company plans to drive usage in core markets via localized advertising, expand its international footprint using a phased Test, Grow, Commit strategy to integrate into global markets, and continuously improve efficiency by leveraging digital technologies like IoT-enabled manufacturing for real-time data tracking.
For more details, visit here: www.orklaindia.com
Know more about Orkla India
Orkla India IPO Review: GMP, Share Price, Valuation, Peer Comparison & More
Understand the Orkla India IPO in simple terms: what the company does, GMP trends, risks, financials, peer comparison, and whether the price is fair or not, and more.
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Who are the promoters of Orkla India?
The promoters are Orkla ASA, Orkla Asia Holding AS, and Orkla Asia Pacific Pte. Ltd. The promoter selling shareholder is Orkla Asia Pacific Pte. Ltd. They collectively hold a controlling ownership stake of 90% of the pre-IPO equity share capital.
Who are the competitors of Orkla India?
Key competitors in the packaged food market include major domestic players such as Everest Food Products Private Limited and Aachi Masala Foods Private Limited. The primary listed industry peer used for financial benchmarking and comparison is Tata Consumer Products Limited.
How does Orkla India Limited make money?
The company makes money primarily by selling Spices (66.3% of Q1 FY26 product sales) and Convenience Foods (33.7% of sales). It sells approximately 23 lakh units on average every day through extensive distribution networks domestically and in 45 international markets.