LIVE: Orkla India IPO opens, GMP down 10% in 3 days – Check IPO size, subscription status, and key details

Among listed peers, Tata Consumer Products is the closest comparable. However, Orkla India outperforms Tata Consumer in terms of return on net worth, with nearly double the RoNW.

Anand Rathi Research in its IPO note said, “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 “Subscribe- Long Term” rating to the IPO.”

“At the upper price band of Rs 730, Orkla is available at a P/E of 31.7x (FY26E annualised), which appears fairly priced compared to its peers. Orkla India is poised for long-term growth, backed by a strong balance sheet, steady cash flows, supportive policy tailwinds, focus on regional brands, product innovation, robust distribution network and early signs of demand recovery—especially as GST cuts and rising consumer sentiment boost its core food categories. Hence, we assign a SUBSCRIBE rating for investors with a long-term investment horizon,” said Geojit in its IPO note

Orkla India has an average distribution of 2.3 million units per day, particularly strong foothold in Karnataka, Kerala, Andhra Pradesh, and Telangana. Beyond India, it exports to over 40 countries.

• Supply chain disruption: Availability of raw materials for spices and masalas are subject to price fluctuations due to weather, supply-demand shifts and logistics. Any adverse impact in the supply chain may impact operations.

• Operational risk: Any contamination or spoilage of raw materials could damage brand reputation or attract regulatory action leading to disruption in the company’s operations.

• Supplier concentration: During FY25, the company procured ~34% of raw materials from top-10 suppliers. Any loss of suppliers or interruptions in the timely delivery of supplies could have an adverse impact on the business.

• Legal risk: Orkla India is currently party to 124 proceedings initiated against it pending before various judicial and

regulatory authorities alleging non-conformity of the provisions under the FSS Act due to presence of impermissible substance. Any adverse ruling against the company might have financial or operational impact.

The company’s product portfolio comprises two key product categories, Spices and Convenience Foods, the latter of which includes RTC foods, RTE foods, vermicelli, and others. Their products cater to every meal occasion, from breakfast and lunch to dinner, snacks, dessert,s and beverages.

The Orkla India IPO on Day 1 so far received an overall subscription at 0.75 times. The retail portion was subscribed 0.87 times, while the non-institutional investor (NII) category subscribed 1.45 times. However, demand from qualified institutional buyers (QIBs) remained muted, with the segment subscribed only 0.02 times so far.

“Based on FY 2026 annualised earnings and fully diluted post- IPO paid up capital, the company is asking for a PE of 31.7x, which appears reasonable given its market leadership, strong brands, and entrenched regional dominance in the spices and convenience foods space. However, investors should note that the IPO comprises a 100% Offer for Sale (OFS) of Rs. 1,667 cr, which could be viewed as a key concern for new investors. With a widespread distribution network of 834 distributors and exports to 45 countries, Orkla India demonstrates strong domestic and global reach. We believe Orkla India is well placed in India’s fast-growing packaged food sector. Hence, we recommend investors to “SUBSCRIBE” the Orkla India Ltd IPO for long term perspective,” said Rajan Shinde, Research Analyst, Mehta Equities.

In the seed phase, they aim to take a cost-effective approach to entering new markets. They typically operate through a trading model that relies on a third-party master distributor, which allows them to establish an initial presence without incurring direct sales overhead. This phase is focused on testing market potential and building foundational awareness, while keeping their operational complexity and costs as low as possible.

“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 “Subscribe- Long Term” rating to the IPO,” said Anand Rathi Research in its IPO note.

The Orkla India IPO so far on Day 1 subscribed 0.51 times overall. Investor interest was mainly led by the retail segment, which saw 66% subscription so far. The non-institutional investor (NII) category also showed some participation, with 84% of the portion booked. However, the qualified institutional buyers (QIB) category was yet to see any bids as of now.

Among listed peers, Tata Consumer Products is the closest comparable. However, Orkla India outperforms Tata Consumer in terms of return on net worth, with nearly double the RoNW.

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.

Anand Rathi Research, in an IPO note, stated that at the upper price band, the company is valued at P/E of 31.5x to its FY26 annualised earnings and a market cap of Rs 10,000 crore post issue of equity shares.

With an average distribution of 2.3 million units per day, Orkla India has a particularly strong foothold in Karnataka, Kerala, Andhra Pradesh, and Telangana. Beyond India, it exports to over 40 countries.

For FY25, Orkla India reported revenue of Rs 2,455 crore and net profit of Rs 255.69 crore, translating to a net margin of 10.7%. The company’s return on net worth (RoNW) stood at 13.8%, while return on capital employed (RoCE) was 32.7%.

Orkla India is a powerhouse in the Indian packaged food segment, housing well-known household brands like MTR, Eastern, and Rasoi Magic.

Its portfolio boasts over 400 products, spanning across spices, ready mixes, instant foods, and breakfast items.

The company continuously innovate around their offerings to meet evolving customer needs. The company do this through a combination of enhancing recipes, creating different product formats, and implementing novel preparation methods, among other approaches. For instance, they launched (a) MTR Minute Fresh batters, as a more convenient addition to their existing range of Dry Mixes; (b) Ready-to-Eat range of sweets as an extension of their existing range of Sweet Mixes; and (c) 3-Minute Breakfast range as an expansion of convenience offerings to their existing breakfast range.

Ahead of the public issue, Orkla India raised close to Rs 500 crore from anchor investors.

Top investment banks – ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital — are acting as the lead book-running managers, while KFin Technologies is handling the registrar duties.

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The company’s product portfolio caters to local tastes by offering a range of local dishes within its core markets. For instance, Orkla India offers Puliogare and Bisi Belebhath to cater to consumers in Karnataka, Chicken Porichathu and Assal Kayam Sambar Masala to cater to consumers in Kerala, and Podi and Masala Karam to cater to consumers in Andhra Pradesh. Additionally, the company also ensures that seemingly similar dishes consumed across various states are crafted to cater to local nuances.

The company is determined to drive growth in its core markets of Karnataka, Kerala, Andhra Pradesh and Telangana by leveraging favourable market conditions, which include the shift towards packaged products, the importance of regional and authentic flavours, and consumers’ focus on health and convenience. Of the Indian domestic spices market, the packaged spices market constitutes a 40% share, valued at Rs 34,500 crore as of FY24.

The IPO window opened on October 29 and is set to close on October 31. The basis of allotment is scheduled for November 3. Refunds will be processed on November 4, and the company’s shares are expected to list on the NSE and BSE on November 6.

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The company has an extensive pan-India distribution network with 834 distributors and 1,888 sub-distributors across 28 states and six union territories, 42 modern trade partners and six e-commerce and quick commerce partners. Their brands, MTR and Eastern, are the most widely distributed brands in Karnataka and Kerala for spices.

Out of the universe of approximately 3 lakh retail outlets selling blended spices in Karnataka and approximately 74,500 in Kerala, their brands have a presence in 67.5% and 70.4% of the outlets, respectively, versus an industry average of 30–40%.

Orkla India has fixed its price band at Rs 695–Rs 730 per share, making it accessible for both retail and institutional investors. The minimum application size is 20 shares, translating to an entry cost of Rs 14,600 at the upper price band.

The Orkla India IPO is a complete offer for sale (OFS). Existing shareholders, including Orkla Asia Pacific and public investors Navas Meeran and Feroz Meeran, will offload around 2.28 crore shares through this issue. Since it is a pure OFS, the company will not receive any fresh funds from the IPO.

“Based on FY 2026 annualised earnings and fully diluted post- IPO paid up capital, the company is asking for a PE of 31.7x, which appears reasonable given its market leadership, strong brands, and entrenched regional dominance in the spices and convenience foods space. However, investors should note that the IPO comprises a 100% Offer for Sale (OFS) of Rs. 1,667 cr, which could be viewed as a key concern for new investors. With a widespread distribution network of 834 distributors and exports to 45 countries, Orkla India demonstrates strong domestic and global reach. We believe Orkla India is well placed in India’s fast-growing packaged food sector. Hence, we recommend investors to “SUBSCRIBE” the Orkla India Ltd IPO for long term perspective,” said Rajan Shinde, Research Analyst, Mehta Equities.

Highlighting the valuation of Orkla India IPO, Angel One pointed out that, that the issue is a ‘Subscribe.’ According to them, the “Orkla India is valued at a post-IPO P/E of 31.68x, which appears fairly priced considering its diversified product portfolio, strong market presence, and long-term growth visibility.”

You can read more on the financials and analyst outlook on valuations here-

Read More: Orkla India IPO opens today: From GMP, key risks to valuations, check 7 critical factors before  you subscribe

“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 “Subscribe- Long Term” rating to the IPO,” said Anand Rathi Research in its IPO note.

The company is tailoring their brand-building initiatives to local consumers by undertaking advertising campaigns in regional languages, undertaking local activations, collaborating with local influencers and crafting culturally relevant messages to create meaningful connections with consumers. They believe that this approach will not only strengthen brand awareness but also increase usage of their products and strengthen consumer loyalty, resulting in increased brand penetration and market share.

The company’s product portfolio comprises two key product categories, Spices and Convenience Foods, the latter of which includes RTC foods, RTE foods, vermicelli and others. Their products cater to every meal occasion, from breakfast and lunch to dinner, snacks, desserts and beverages.