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From Kitchen to Capital Market: Orkla India’s IPO Explained

Writer
Nidhi Thakur
timer
October 28, 2025
From Kitchen to Capital Market: Orkla India’s IPO Explainedblog thumbnail

Key Takeaways

  • Orkla India owns heritage brands MTR, Eastern and Rasoi Magic and sells 2.3 million units daily.
  • IPO opens Oct 29 and closes Oct 31, 2025; price band ₹695–₹730; total issue ₹1,667.54 crore.
  • FY25 revenue ₹2,455.24 crore; EBITDA margin 16.15% in FY25 (up from 14.39% in FY24).
  • Despite strong brands, three-year revenue and profit growth is muted; Assigns a Neutral view.

Orkla India’s IPO at a glance

Orkla India, incorporated in 1996, is a multi-category Indian food company with a portfolio spanning breakfast, snacks, ready-to-cook mixes, beverages and desserts. Its flagship heritage brands — MTR, Eastern and Rasoi Magic — give the company strong consumer recall and distribution reach.

The IPO opens on 29 October 2025 and closes on 31 October 2025, with a price band of ₹695–₹730 and a total issue size of ₹1,667.54 crore. Listing is planned on BSE and NSE.

Key numbers investors should note

  • Reported consolidated total income for FY25: ₹2,455.24 crore.
  • EBITDA margin improved to 16.15% in FY25 from 14.39% in FY24 and 14.19% in FY23.
  • Net profit in FY25 stood at ₹255.69 crore.
  • The company distributes 2.3 million units daily and exports to 40+ countries; manufacturing footprint includes India, UAE, Thailand and Malaysia.

Why the IPO matters (market context)

Orkla India’s listing is significant for two reasons. First, it brings well-known Indian heritage FMCG brands to the public markets, giving retail investors direct access to home-grown food staples. Second, the offering arrives at a time when FMCG valuations are under scrutiny — investors are weighing brand strength against growth momentum and raw-material cost pressure.

In the broader market, FMCG companies with clear growth levers and steady margin profiles tend to attract long-term investors. Orkla India has brand and distribution strength, but the IPO note flags limited revenue and profit growth over the last three years, which tempers the upside expectation.

Strengths and risks — straight from the IPO note

Strengths

  • Category leader in packaged spices and a multi-category product portfolio with >400 SKUs.
  • Scalable pan-India distribution, growing digital and export channels, and automated manufacturing with quality controls.

Key risks

  • Raw and packaging materials accounted for 56.8% of total expenses in FY25; any adverse commodity movement can hit margins.
  • Dependence on key suppliers and risks around storage/contamination can lead to regulatory or reputational damage.
  • The IPO note also highlights the need to drive household penetration and operational efficiencies to improve margins.

What the Neutral rating signals to investors

The report’s Neutral rating reflects a balanced view: strong brands and wide distribution versus muted growth and valuation that looks tight relative to recent performance. The IPO may suit investors who value brand equity and steady cash flows, but those seeking aggressive growth or quick listing pops may find the risk-reward limited.

Real-world example to put it in perspective

Think of Orkla India as a beloved regional restaurant chain that has mastered its recipes and built loyal customers but has only slowly expanded footprint and average spend per customer. The brand gives trust, but without faster store openings or higher per-store sales, revenue growth remains modest. The IPO offers a chance to own that brand, but returns will depend on execution — expanding penetration, new products, cost management — all points flagged in the IPO note.

Regulatory and disclosure checklist for investors

  • Read the Red Herring Prospectus for detailed risk factors and allocation rules; the IPO note points readers to the RHP for full disclosures.
  • IPO allotment, refund and listing timeline are provided in the IPO note — check the dates before applying.

Frequently asked questions

Q: When is the Orkla India IPO open?
A: The IPO opens on October 29, 2025 and closes on October 31, 2025.

Q: What is the price band and issue size?
A: Price band is ₹695–₹730 per share; total issue size is ₹1,667.54 crore.

Q: Is Orkla India profitable?
A: Yes. FY25 net profit was ₹255.69 crore and EBITDA margin improved to 16.15% in FY25.

Q: What are the main risks?
A: Major risks include commodity cost volatility (raw & packaging materials), supplier dependence, and execution risks around scaling distribution.

Conclusion

Orkla India brings established brands and wide distribution to the IPO market. The company’s FY25 improvements in margin and steady revenue base are positives, but muted three-year growth and commodity-linked cost structure justify a cautious stance. Hence, we assign a Neutral rating.

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