Core Viewpoint - The company, Orkla India, is planning an IPO to raise ₹1,668 crore, appealing to long-term investors with a high-risk appetite due to its revenue and profitability growth over the past three years [1][10]. Business Overview - Incorporated in 1996, Orkla India is a subsidiary of Norway-listed Orkla ASA, specializing in spices and convenience foods, exporting to 45 countries [3][10]. - The company holds a significant market position in South India, contributing 70% of its revenue, with a market share of 41.8% in Kerala, 31.2% in Karnataka, and 15.2% in Andhra Pradesh and Telangana [10]. - The company operates nine manufacturing units and additional contract manufacturing facilities in the UAE, Thailand, and Malaysia, with a combined installed capacity of 180,000 tonnes per annum and a capacity utilization of 46% [5][10]. Financial Performance - Revenue and operating profit (EBITDA) grew by 5% and 12.6% annually, reaching ₹2,394.7 crore and ₹396.4 crore, respectively, in FY23-25 [6][10]. - The EBITDA margin improved to 16.6% in FY25 from 14.4% in FY23, despite slower revenue growth in FY25 due to lower price realization in key spices [6][10]. - Profit before tax increased by 17.6% to ₹355 crore, while net profit decreased to ₹255.7 crore from ₹339.1 crore due to deferred tax adjustments related to the Eastern Condiments merger [7][10]. - Operating cash flow improved significantly to ₹391.7 crore in FY25 from ₹190.4 crore in FY23 [8][10]. - In the June 2025 quarter, revenue and net profit rose by 6% and 10% year-on-year, reaching ₹597 crore and ₹78.9 crore, respectively [8][10]. Valuation - The company is expected to demand a price-earnings (P/E) multiple of up to 39 based on post-IPO equity and net profit for FY25, with no direct publicly listed peers in the spices-to-food-products sector [9][10]. Investment Activity - Orkla India has raised approximately ₹500 crore from anchor investors ahead of its IPO, with notable investors including Nippon India MF, Aditya Birla Sun Life MF, and others [10].