Overview
Orkla India IPO, the Indian food company known for its packaged spices and snacks, opened for subscription on October 29, 2025. The IPO is an offer for sale (OFS) of 2.28 crore equity shares aggregating approximately ₹1,667 crore. Orkla India is backed by Orkla ASA, a major Norwegian conglomerate, and is a category leader expanding nationally in India.
Offer Snapshot
- IPO opening date: October 29, 2025
- IPO closing date: October 31, 2025
- Issue size: ₹1,667.54 crore (all OFS; no fresh issue)
- Price band: ₹695 to ₹730 per share
- Lot size: 20 shares
- Market cap (indicated): ₹10,000 crore
- Expected listing date: November 6, 2025 (NSE & BSE)
- Registrar: KFin Technologies Ltd
- Book Running Lead Manager: ICICI Securities Ltd
Financials
- Revenue: ₹23,947 million in FY25, slight rise from ₹23,560 million in FY24
- Profit after tax (PAT): ₹256 crore in FY25, improved 13% YoY
- EBITDA: ₹396 crore with a margin of 16.6%
- Minimal borrowings of ₹2 crore as of March 2025, indicating a near debt-free balance sheet
- Return on capital employed (ROCE): 32.7%, net worth (RoNW): 13.8%, reflecting efficient capital usage
Business Highlights
- Orkla India is a leading packaged foods company with strong regional presence, especially in southern India
- Offers a diversified product portfolio with well-known brands and rapidly expanding distribution across 28 states and 6 union territories
- Exports to 42 countries, leveraging global brand Orkla ASA’s expertise
- Flexible and automated manufacturing facilities with technology-driven supply chain and strict quality controls
Use of Proceeds
- Since this is an Offer for Sale (OFS), no fresh funds raised; proceeds will go to existing shareholders
- The IPO enables existing promoters and investors to partially exit while listing on stock exchanges
- No stated fresh capital expenditure or expansion plan funded from this issue
Risks
- Price volatility risk given the OFS nature and dependence on secondary market demand
- Raw material and packaging costs, constituting 56.8% of FY25 expenses, could impact margins if input prices fluctuate
- Risk of supply disruptions or product quality issues affecting brand reputation and revenues
- Dependency on distributors and evolving consumer preferences could affect sales growth
What to Watch Next
- Monitor IPO subscription trends during the open window (Oct 29–31) and grey market premium (currently around ₹60–114)
- Post-listing market reaction and price performance on November 6, 2025
- How the stock performs compared to peers like Tata Consumer Products, Marico, and Nestle India
- Any corporate developments by Orkla post-listing that impact growth or profitability
FAQs
Q1: When does the Orkla India IPO open and close?
The IPO opens on October 29 and closes on October 31, 2025.
Q2: What is the price band and lot size?
The price band is set between ₹695 and ₹730 per share, with a minimum lot size of 20 shares.
Q3: Is this a fresh issue or an OFS?
It is an Offer for Sale only, meaning existing shareholders are selling their shares; no fresh capital will be raised.
Q4: When will the shares be allotted and listed?
Allotment is expected by November 3, refund and credit on November 4, and listing on November 6, 2025.
Q5: What are the key financial highlights?
Orkla India reported ₹23,947 million revenue and ₹256 crore PAT for FY25, with a healthy EBITDA margin of 16.6%.
Orkla India’s strong regional presence, especially in the south, combined with its diversified portfolio and expanding distribution network, makes it an interesting play for long-term growth. The company’s consistent revenue and profit growth, along with minimal debt, add confidence to this IPO.
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