Orkla India IPO: Dates, Price Band, Financials & Key Risks — 10 Things Investors Must Know from RHP

The Orkla India IPO, the much-awaited issue from the parent company of MTR and Eastern condiments, is all set to open for subscription later this week. The company has fixed the IPO price band at ₹695–₹730 per share, valuing it at approximately ₹10,000 crore at the upper end of the price range.

Here’s a detailed look at the 10 key insights from the company’s Red Herring Prospectus (RHP) that every investor should know before subscribing.

1️⃣ Orkla India IPO Dates

The IPO will open for subscription on October 29, 2025, and close on October 31, 2025. Shares are expected to be listed on November 6, 2025 on both NSE and BSE.

2️⃣ IPO Structure

The entire issue is an Offer for Sale (OFS) of up to 22,843,004 equity shares by existing shareholders and promoters. There will be no fresh issue component in this IPO.

3️⃣ Objective of the IPO

Since it’s a complete OFS, the ₹1,667 crore proceeds will go to the selling shareholders — the company itself will not receive any funds from the issue.

4️⃣ Financial Performance

Revenue (FY25): ₹2,394.7 crore — up 1.6% YoY

Profit (FY25): ₹255.69 crore — up 12.9% YoY from ₹226.33 crore in FY24

The modest revenue growth and steady profit increase indicate stable performance despite cost pressures.

5️⃣ Industry Peers

Tata Consumer Products is Orkla India’s only listed peer.

P/E Ratio: 90.1x for Tata Consumer

EPS Comparison: ₹18.7 for Orkla India vs ₹13.1 for Tata Consumer

While Tata Consumer’s revenue base is larger, Orkla boasts a stronger EPS.

6️⃣ Industry Overview

According to a Technopak report, India’s packaged food market was valued at ₹10,180 billion in FY24, with a 10.8% CAGR since FY19. India dominates the global spice sector — contributing 70% of global production and 43% of spice exports by value.

7️⃣ About Orkla India

Orkla India is a multi-category food company offering products across meal segments — from breakfast to beverages and desserts. In FY24, it ranked among the top four companies in India’s spices and convenience foods segment by revenue.

8️⃣ Distribution Network

Distributors: 834

Sub-distributors: 1,888

Coverage: 28 states & 6 union territories

Modern trade partners: 42

E-commerce/Quick commerce partners: 6

Orkla’s brands MTR and Eastern are category leaders in Karnataka and Kerala, with market penetration of 67.5% and 70.4%, respectively — far above the industry average of 30–40%.

9️⃣ Manufacturing Facilities

As of June 30, 2025, Orkla India operates 9 manufacturing units across 4 states and has 21 contract manufacturing facilities (18 in India and 3 abroad). This diversified base supports scalability and efficiency in production.

🔟 Key Risks for Investors

Supplier Dependence: The top 10 suppliers accounted for 37.9% of purchases (Q1 FY26) and 33.7% in FY25. Supply disruptions could impact operations.

Raw Material Price Volatility: Any surge in the prices of key ingredients or packaging materials may affect margins and cash flows.

📊 Book Running Lead Managers

The IPO is being managed by ICICI Securities, Citi, JP Morgan, and Kotak Mahindra Capital.

KFin Technologies is the registrar to the issue.