From Kitchen Shelves to Stock Markets — All You Need to Know
The Indian food and spice industry is set to witness one of its most anticipated listings as Orkla India Limited, the maker of popular household brands like MTR Foods and Eastern Condiments, gears up for its initial public offering (IPO). Backed by Norwegian conglomerate Orkla ASA, this IPO marks a major milestone for the company’s Indian operations and signals growing investor appetite in the fast-moving consumer goods (FMCG) sector. The Orkla India IPO is expected to open for subscription on October 29, 2025, and close on October 31, 2025, with the company likely to list on both NSE and BSE by November 6, 2025.
Company Overview
Orkla India Limited is a subsidiary of Orkla ASA, a leading Nordic consumer goods group with operations across 30 countries. In India, Orkla operates through well-known brands such as:
- MTR Foods – known for ready-to-eat meals, masalas, breakfast mixes, and beverages.
- Eastern Condiments – one of South India’s most trusted spice and curry mix brands.
- Priya Foods (under partnership) – expanding into pickles and spice-based condiments.
The merger of these brands under one roof positions Orkla India as a dominant player in India’s packaged food and spice segment, which is expected to grow at a CAGR of 12–14% over the next five years.
IPO Details
According to the company’s draft red herring prospectus (DRHP) filed with SEBI, the Orkla India IPO will be a pure Offer for Sale (OFS). This means no new shares will be issued, and all proceeds will go to existing shareholders offloading their stake.
Key IPO Highlights:
- IPO Size: Approx. ₹1,667 crore
- IPO Open – October 29, 2025
- IPO Close – October 31, 2025
- IPO Allotment – November 3, 2025
- Offer Type: 100% Offer for Sale (OFS)
- Price Band: ₹695 – ₹730 per share
- Face Value: ₹10 per share
- Market Lot: 20 shares
- Listing Date : November 6, 2025
- Book Running Lead Managers (BRLMs): Kotak Mahindra Capital, ICICI Securities, and Axis Capital
At the upper price band, Orkla India is estimated to have a market capitalization of about ₹10,000 crore, making it one of the larger FMCG listings of the year.
Financial Performance
Orkla India’s financials have been strong, reflecting the steady demand for packaged food products and condiments in India.
Key Financial Indicators (FY22–FY25):
| Metric | FY22 | FY23 | FY24 | FY25 (Est.) |
|---|---|---|---|---|
| Revenue | ₹2,350 Cr | ₹2,620 Cr | ₹2,985 Cr | ₹3,250 Cr |
| EBITDA Margin | 14% | 15.2% | 16.5% | 17% |
| Net Profit | ₹210 Cr | ₹255 Cr | ₹310 Cr | ₹355 Cr |
The company has been steadily increasing profitability through product diversification, cost optimization, and brand synergy between MTR and Eastern.
Use of Proceeds
Since the IPO is entirely an Offer for Sale, Orkla India will not receive any funds directly. The selling shareholders — primarily Orkla ASA’s investment arm and minority stakeholders in Eastern Condiments — will monetize part of their holdings. However, the listing is expected to:
- Improve brand visibility and trust in the Indian consumer market.
- Provide liquidity to existing shareholders.
- Strengthen corporate governance and transparency.
Industry Outlook
India’s packaged foods and spice market has seen explosive growth post-pandemic. With evolving lifestyles, urbanization, and a growing middle class, demand for ready-to-eat and convenience foods is booming.
Analysts estimate the Indian packaged food industry to reach ₹7.5 lakh crore by 2030, with regional brands like MTR and Eastern playing a key role.
The entry of Orkla India into the stock market reflects increasing global confidence in India’s FMCG story — a sector driven by daily essentials, low volatility, and long-term consumption growth.
Strengths of Orkla India
- Strong Brand Portfolio: MTR and Eastern are household names with robust regional loyalty.
- Diversified Product Range: Presence across ready meals, breakfast mixes, spices, condiments, and snacks.
- Pan-India Distribution: Extensive retail network and e-commerce partnerships.
- Parent Support: Backed by Norway’s Orkla ASA, ensuring access to global R&D and financial strength.
- Consistent Financial Growth: Rising revenues and steady margins make it a stable FMCG play.
Risks and Challenges
- High Competition: Faces stiff rivalry from Everest, MDH, ITC’s Aashirvaad, and Tata Sampann.
- Raw Material Price Fluctuation: Spices and cereals are prone to seasonal volatility.
- Dependence on Parent Company: Strategic and financial decisions may rely on Orkla ASA.
- Limited Fresh Capital: Being a pure OFS, no new funds will go to company expansion.
Expert Opinion
Analysts are largely positive on the IPO, citing Orkla India’s strong fundamentals and established brand equity. However, some caution that valuations may appear stretched compared to peers like Nestlé India and Tata Consumer Products, especially considering the absence of fresh issue proceeds.
Long-term investors seeking stable FMCG exposure with strong brand presence may find Orkla India an attractive addition to their portfolio.
Conclusion
The Orkla India IPO represents more than just a listing — it’s a symbolic entry of a global food powerhouse into Indian equity markets. With brands that define Indian kitchens and a legacy of quality, Orkla India stands at the crossroads of tradition and growth.
As India’s food industry continues to evolve, Orkla’s public debut could pave the way for more global FMCG players to tap into the country’s booming consumer appetite.
