MTR Foods maker Orkla India IPO opens today: Check GMP, subscription, review and other details

Company Overview - Orkla India is a leading packaged food and condiments company in India, incorporated in 1996, with a diverse portfolio of over 400 product lines including instant mixes, spices, ready-to-eat meals, snacks, and beverages [9][10] - The company operates nine manufacturing facilities in India with an installed capacity of 182,000 tonnes per annum and has a strong distribution network supported by 834 distributors and nearly 1,900 sub-distributors [6][9] Financial Performance - For FY25, Orkla India reported a total income of Rs 2,455 crore and a net profit of Rs 256 crore, reflecting a year-on-year increase of 13% [7][9] - The company's EBITDA margin was 16.6%, and the return on capital employed (ROCE) was 32.7%, indicating a robust financial position [7][9] IPO Details - The IPO is priced between Rs 695 to Rs 730 per share, with a minimum application size of 20 shares, requiring an investment of Rs 14,600 for retail investors [1][9] - The IPO consists entirely of an offer for sale (OFS) by its Norwegian parent Orkla ASA and affiliated entities, with no fresh issue component [9][10] - The company has allocated up to 50% of the issue for qualified institutional buyers, at least 35% for retail investors, and 15% for non-institutional investors [1][9] Market Sentiment - The stock is currently commanding a grey market premium (GMP) of around 12%, suggesting potential listing prices between Rs 810 and Rs 820 if current sentiment persists [2][9] - The listing is scheduled for November 6, 2025, on both the BSE and NSE, with ICICI Securities as the book-running lead manager [2][9] Analyst Insights - Analysts express cautious optimism regarding the IPO, highlighting strong brand leadership and stable margins, while noting the absence of fresh capital as a limitation [8][10] - At the upper price band of Rs 730, the company is valued at a market cap of Rs 10,000 crore, translating to approximately 31.7 times FY26 annualized earnings, which is considered reasonable given its brand strength [8][10] - Mehta Equities has rated the issue as "Subscribe for long-term," emphasizing Orkla India's established distribution network, export presence, and backing from its global parent as key positives [8][10]