Highlights: Orkla India IPO subscribed 48.73x on final day; GMP up 17%- Check key details

The company is market leader in categories 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

Orkla ASA, Orkla Asia Holding and Orkla Asia Pacific are the promoters of the company. As on the date of filling of this Red Herring Prospectus, the company has eight Directors on the Board comprising one Executive Director, three Non-Executive Directors and four are Independent Directors.

As of June 2025, Orkla India operated nine manufacturing facilities across four states, primarily in South India. In addition, the company had active arrangements with 21 contract manufacturing units—18 located across seven Indian states and 3 situated internationally—all managed by independent third-party operators.

The company’s product portfolio includes around 400 products across two main categories: spices (blended and pure varieties such as Masalas, Turmeric, and Cumin) and convenience foods, which encompass RTC foods, RTE meals, vermicelli, beverages, pickles, and more. These products cater to all meal occasions, from breakfast to desserts, addressing diverse consumer needs.

“At the upper price band of Rs 730, Orkla is available at a P/E of 31.7x (FY26 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 Investments in an IPO note.

Orkla’s revenue growth in FY25 was affected by lower spice prices, particularly chillies, and subdued consumer demand amid food inflation. However, the company improved its EBITDA margin to around 16.6%, supported by softer raw material costs and improved operational efficiency.

Through its brands MTR and Eastern, Orkla has established a strong foothold in major South Indian markets (31% in Karnataka & 42% in Kerala in the packaged spices segment) by emphasising authentic local flavours and consistent product quality. The company holds an 18.6% pan-India market share in the ready-to-eat and ready-to-cook convenience foods segment.

The issue of Orkla India gets subscribed fully on Day 02 of bidding. The retail investors have booked the issue 1.10 times, while the employee section saw huge interest, subscribing to the IPO almost 4 times. The NIIs have subscribed to it 2.13 times. However, the QIBs are yet to jump in.

The company aim to set up a local legal entity, which allows them to invoice locally and manage their supply chain more efficiently. The company also leverage local sourcing opportunities to optimise costs and tailor their products to local preferences. By establishing a more substantial and direct operational footprint, they position themselves for sustained growth and deeper market integration, moving beyond the limitations of third-party distribution models and solidifying their long-term commitment to the market.

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

Urbanisation and increasing female participation in the workforce are fuelling the demand for convenient food products. In FY24, convenience food accounted for approximately 0.9% of the packaged food category, a share projected to grow to 1.3% by FY29, reflecting a CAGR of 18.2%. Products like ready-to-mix dosa and idli batters and ready-to-eat meals from brands like MTR and Haldiram (e.g., paneer butter masala and dal makhani) save consumers time and effort and tap into this trend.

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

India’s packaged food market is projected to grow at a CAGR of 11% to reach Rs 17,12,000 crore by FY29. The Indian packaged food market was estimated at Rs 10,18,000 crore in FY24, reflecting a CAGR of 10.8% as against FY19. The high growth is driven by rising disposable incomes, urbanisation, lifestyle changes, nuclearisation, and a growing workforce, particularly among women. The packaged food market remains stable throughout the year, as demand is primarily driven by regular consumption rather than seasonal fluctuations.

“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.

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.

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% for FY25. The company’s return on net worth (RoNW) stood at 13.8%, while return on capital employed (RoCE) was 32.7%.

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.