Orkla India IPO GMP up 13% ahead of issue opening for subscription on October 29

Orkla India Ltd., the parent company of packaged foods maker MTR Foods, is gearing up for its stock market debut, with its initial public offering (IPO) opening for public subscription on Wednesday, October 29.

In the grey market, Orkla India's shares

are currently trading at a premium of around 13% over the issue price of ₹730 per share, showing decent investor interest ahead of the IPO launch.

However, market experts caution that grey market premiums merely indicate early sentiment in the unlisted market and tend to fluctuate rapidly.

The IPO, which will remain open until October 31, has a price band of ₹695-₹730 per share. Investors can bid for a minimum of one lot comprising 20 shares (₹14,600 minimum investment at the upper band) and in multiples of 20 shares thereafter.

The entire issue is an Offer for Sale (OFS), through which Orkla India aims to raise ₹1,667 crore. This means no new shares are being issued and the company itself will not receive any proceeds from the issue.

The funds will go to existing shareholders like Orkla ASA, Orkla Asia Holdings AS, and Orkla Asia Pacific Pte Ltd., who are partially offloading their stakes.

At the upper end of the price band, Orkla India is valued at a price-to-earnings (P/E) ratio of 39x, based on FY25 diluted earnings per share (EPS).

Orkla entered India in 2007 with the acquisition of MTR Foods, and has since expanded its portfolio through acquisitions, including Eastern Condiments, a heritage spice brand in Kerala, acquired in 2021.

The company has built a strong presence in the branded food space, with spices contributing 66% of total revenue and the remaining share coming from convenience foods.

In an interaction with CNBC-TV18, the company said revenue growth of around 5% CAGR over FY23-FY25 reflects the impact of the current consumption slowdown and elevated food inflation. Historically, MTR clocked 13% revenue growth between 2010-2020, and 13.3% between 2022-2024.

For the first quarter of FY26, Orkla India reported volume growth of 8.5%. The company said that half of the margin expansion was driven by a decline in raw material prices, while the other half came from increased sales of value-added products, outsourcing of low-value manufacturing, digitization, and cost efficiencies.

Despite inheriting seven factories from the Eastern Condiments acquisition, capacity utilisation remains low at 46%, providing ample room for future growth.

The management also clarified there is no need for fresh capital infusion, as the business generates ₹300-400 crore in annual cash flow and carries no debt on its balance sheet.

Following the IPO, Orkla India shares are expected to list on both the NSE and BSE on November 6, 2025.