The Orkla India IPO is one of the highly anticipated initial public offerings in 2025, marking the Indian debut of Orkla India Foods Private Limited on major stock exchanges such as BSE and NSE. This IPO presents a significant opportunity for retail and institutional investors to participate in the growth story of one of India’s leading food companies.
About Orkla India
Orkla India Foods Private Limited is a renowned Indian food company with a rich heritage rooted in South Indian culinary traditions. Headquartered in Bengaluru, Orkla India boasts an extensive product portfolio of over 400 items, including blended and pure spices, ready-to-cook mixes, and convenience foods like instant dosa and poha. The company is well-established in key Indian states such as Karnataka, Kerala, Andhra Pradesh, and Telangana and has a strong export footprint across more than 40 countries. Orkla India’s operations are supported by both owned and contract manufacturing facilities spread across India, UAE, Thailand, and Malaysia. The company benefits from the backing of its Norwegian parent, Orkla ASA, which brings global expertise in governance, sustainability, and innovation.
Orkla IPO Details and Timeline
The Orkla India IPO is scheduled to open for subscription on October 29, 2025, and will close on October 31, 2025. The company plans to list its shares on the BSE and NSE by November 6, 2025. Investors can bid within the price band of ₹695 to ₹730 per share. The minimum application size for retail investors is set at 20 shares, which translates to an investment of approximately ₹14,600 at the upper price band.
The IPO follows a book-building process and represents an Offer for Sale (OFS) of roughly 2.28 crore shares, aggregating to around ₹1,667.54 crore. Existing shareholders including Orkla Asia Pacific, Navas Meeran, and Feroz Meeran are offering these shares. The promoters collectively hold approximately 90% of the pre-IPO shareholding, which is expected to be trimmed to around 75% post-IPO.
Investor Categories and Allotment
The IPO has a reservation structure catering to different investor categories:
- Qualified Institutional Buyers (QIBs): Not more than 50% of the net offer
- Retail Individual Investors (RIIs): At least 35% of the net offer
- Non-Institutional Investors (NIIs): At least 15% of the net offer
Anchored by robust investor interest, Orkla India raised ₹499.6 crore through anchor book investors on October 28 before the public subscription. This list included prominent institutional names such as Nippon Life India, Aditya Birla Sun Life AMC, and Government Pension Fund Global, signaling strong confidence in the IPO.
Financial Performance Highlights
Orkla India has demonstrated consistent financial strength and operational efficiency:
- Return on Capital Employed (ROCE) stands at a healthy 32.7% for FY 2025.
- The company maintains a zero debt-to-equity ratio, reflecting a clean balance sheet.
- Profit After Tax (PAT) margins have shown improvement, reaching approximately 10.7% in FY 2025.
- EBITDA margins increased to 16.6%, reflecting operational efficiency.
- Market capitalization is estimated around ₹10,000 crore as of FY 2025.
These financial metrics indicate a sound business model with steady profitability and growth potential.
Business Strengths and Market Position
Orkla India’s competitive edge lies in its deep connection to India’s regional food culture, especially South Indian cuisine, supported by iconic brands like MTR Foods and Eastern Condiments. Its diverse product range spans across categories from breakfast staples to snacks and beverages, catering to a broad consumer base.
The company’s extensive distribution network delivers approximately 2.3 million units daily across India, aided by both owned and contract manufacturing networks, enabling scalability and market penetration. Additionally, Orkla ASA’s global presence and governance standards provide the Indian subsidiary with significant strategic support.
Use of IPO Proceeds
The IPO proceeds will primarily be utilized for costs related to the offer, including fees to lead managers, marketing expenses, regulatory fees, and other miscellaneous expenses. As this is an Offer for Sale, the proceeds will go to the selling shareholders rather than the company.
What Investors Should Consider
The Orkla India IPO offers investors access to a well-established food company with strong brand equity and financial performance. Given its significant presence in Southern India and expanding footprint in other regions, the company is positioned for sustainable growth.
Investors should consider the pricing band, their allocation category, and the associated risks typical with equity investments, including market volatility and industry competition. The backing by a reputed global parent company and participation from prominent institutional investors add to the IPO’s attractiveness.
Conclusion
The Orkla India IPO presents an exciting investment opportunity in the fast-growing Indian food industry. With its diverse product range, robust financials, and strong market presence, Orkla India is set to carve a significant path in the consumer food segment following its public listing. Investors aiming to gain exposure to this stable and innovative player should consider the IPO subscription window between October 29 and October 31, 2025.
This IPO is not just a chance to invest in a legacy brand but also to participate in the story of a modern, sustainable, and innovative food company backed by a century-old global conglomerate.