Orkla India IPO: Can the Maker of MTR Stir Up Investor Appetite?

Orkla India, the company behind MTR Foods, Eastern Condiments and Rasoi Magic, is preparing to issue shares for subscription from October 29 to 31, with anchor bids on October 28. According to its red herring prospectus, the IPO is priced between ₹695 and ₹730 per share, valuing the company at around ₹10,000 crore.

It’s a full offer for sale, meaning the money raised will go entirely to existing shareholders rather than the company. The key sellers are Orkla Asia Pacific Pte Ltd, along with investors Navas Meeran and Feroz Meeran, who each hold about 5%.

The big question to ask is this: Can a familiar name in Indian kitchens find fresh success in the stock market?

What Investors Should Know

At the top end of the price band, the issue size comes to roughly ₹1,667 crore. Orkla India has set aside half of the shares for institutional investors, 35% for retail participants and 15% for non-institutional investors. A retail investor can bid for a minimum of 20 shares, which would cost about ₹14,600.

KFin Technologies will handle the share allocation process, while ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, and JP Morgan India are managing the issue. The listing is expected on November 6, a few days after allotments are finalised.

A Long Journey to the Markets

The story of Orkla in India began back in 2007, when the Norwegian group Orkla ASA acquired MTR Foods, the Bengaluru-based pioneer in ready-to-eat meals. A few years later, it picked up Eastern Condiments, the Kerala spice maker. By 2023, both brands, along with Rasoi Magic, were brought under one umbrella - Orkla India.

The restructuring created a unified business spanning masalas, spice mixes, desserts, and breakfast products. The company now exports to over 40 countries, including the US, Canada, and Gulf nations, and operates nine factories across southern India with a total installed capacity of 182,270 tonnes per annum, according to its DRHP.

The Numbers Behind the Offering

The financials, as disclosed in the DRHP, show steady growth in profitability:

• Revenue from operations: ₹2,394.7 crore in FY25 (up 1.6% year-on-year)
  
• EBITDA: ₹355.05 crore (up 15% YoY)
  
• Profit after tax (PAT): ₹255.69 crore (up 13% YoY)
  
• Net worth: ₹1,853.47 crore
  
• EBITDA margin: 14.8%
  
• PAT margin: 10.7%
  
• Borrowings: negligible, making it a largely debt-free company
  

While top-line growth has been modest, the improvement in margins signals tighter cost control and better operational efficiency. Analysts believe the IPO offers investors exposure to a stable, profitable consumer business with strong brands and limited leverage.

The Broader Picture

India’s packaged food industry continues to expand rapidly. A Technopak report cited in the DRHP estimates the market size at ₹10.18 lakh crore in FY24, growing at a 10.8% CAGR since FY19. Rising incomes, busier lifestyles and demand for convenience foods are driving the trend.

That trend plays directly into Orkla’s strengths. Its brands hold strong loyalty in southern India and are gradually finding traction in newer markets. In a press release earlier this year, Orkla ASA, the parent company, said that they will pursue “a less complex, and more focused portfolio.” The focus will be on profitable growth and disciplined capital allocation to deliver on financial targets.

Why the IPO matters

This listing follows a wave of multinational debuts in India’s capital market. Earlier this year, LG Electronics India launched a blockbuster ₹11,600 crore IPO that drew overwhelming investor demand. Hyundai Motor India and Carraro India have also tested the waters, while companies like Carlsberg India and Versuni Appliances are waiting in line.

For Orkla, the IPO marks an opportunity to showcase its India story - a blend of heritage brands, stable growth, and long-term potential in one of the world’s fastest-growing food markets.

Of course, investors will keep an eye on valuations. At ₹10,000 crore, the company is asking for nearly four times its FY25 revenue, a level that suggests strong faith in future earnings.

Whether that confidence translates into strong market performance remains to be seen. But for a brand that has quietly shaped what many Indian households cook and eat, this public listing could be a fitting new chapter.

After all, the question now is not whether Indians know MTR or Eastern - it’s whether they believe in the company’s next stage of growth.

Sources

DRHP
Hindustan Times
CNBC TV 18
Business Today
Kotak Securities
Business Standard
Moneycontrol
Orkla