Core Insights - The Orkla India IPO has garnered significant interest, being subscribed 2.70 times by the end of Day 2, with strong participation from Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs) [2][6][12] - The grey market premium (GMP) for the IPO is reported at Rs 70, suggesting a potential listing price of around Rs 800, reflecting positive investor sentiment [6][10] - The IPO is a complete Offer for Sale (OFS) by Orkla ASA, with no fresh capital being raised, and the price band set between Rs 695 and Rs 730 per share [7][13] Company Overview - Orkla India, established in 1996, is a leading player in the packaged foods and condiments sector, offering over 400 products, including instant mixes, spices, and ready-to-eat meals [8][17] - The company holds a significant market share in South India, with flagship brands MTR and Eastern commanding a 31–42% market share in key markets and an 18.6% share in India's overall convenience food segment [8][17] - Orkla India operates nine manufacturing facilities across India, with a total production capacity of 182,000 tonnes per annum, supported by a robust distribution network [9][17] Financial Performance - In FY25, Orkla India reported a total income of Rs 2,455 crore and a net profit of Rs 256 crore, reflecting a 13% year-on-year growth [10][17] - The company achieved an EBITDA margin of 16.6% and a return on capital employed (ROCE) of 32.7%, indicating strong profitability and operational efficiency [10][17] Analyst Perspectives - Analysts view the Orkla India IPO as an opportunity to invest in a market-leading company with a diverse product portfolio and strong export performance [12][15] - The valuation at the upper end of the price band of Rs 730 translates to a market capitalization of approximately Rs 10,000 crore, with a P/E ratio of around 31.7x based on FY26 annualized earnings [13][16] - Recommendations from analysts suggest a "Subscribe for Long-Term" rating, highlighting the company's strong distribution network and backing from its global parent as key positives for investors [14][16]

Core Insights - The Orkla India IPO has garnered significant interest, with 79% overall subscription on Day 1, particularly strong among Retail Individual Investors (RIIs) who subscribed to 90% of their reserved shares [1][14] - The grey market premium (GMP) for the IPO is Rs 68, suggesting a potential listing price of around Rs 798, indicating a 9.3% expected gain for investors at the issue price [4][14] - The IPO is a complete Offer for Sale (OFS) by Orkla ASA, with no new funds being raised, and is priced between Rs 695-730 per share [5][12] Company Overview - Orkla India, established in 1996, is a prominent player in the packaged foods and condiments sector, offering over 400 products including instant mixes, spices, and ready-to-eat meals [7][15] - The company holds a significant market share, with flagship brands MTR and Eastern capturing 31-42% in key South Indian states and an 18.6% share in India's overall convenience food segment [7][15] - Orkla India exports to over 40 countries and operates nine manufacturing facilities in India with a total production capacity of 182,000 tonnes per annum [8][15] Financial Performance - In FY25, Orkla India reported total income of Rs 2,455 crore and a net profit of Rs 256 crore, reflecting a 13% year-on-year growth [9][15] - The company maintains a strong EBITDA margin of 16.6% and a return on capital employed (ROCE) of 32.7%, indicating robust financial health [9][15] Analyst Insights - Analysts view the IPO as an opportunity to invest in a market-leading company with strong brand recognition and a diverse product portfolio [10][11] - The valuation at the upper price band of Rs 730 results in a market capitalization of approximately Rs 10,000 crore, equating to a P/E ratio of around 31.7 times FY26 annualized earnings, which is considered justified by its market position [12][14] - The growth strategy of Orkla India focuses on innovation, category diversification, and premiumisation, reinforcing its leadership in the packaged food segment [13][14]

Core Viewpoint - Orkla India has successfully raised approximately Rs 500 crore from anchor investors ahead of its initial public offering (IPO), which is set to open for subscription on October 29, 2025 [1][5]. Group 1: IPO Details - The IPO is valued at Rs 1,667 crore and will be available for public subscription from October 29 to October 31, 2025, with a price band set between Rs 695 and Rs 730 per share [5]. - Orkla India is conducting a complete offer for sale (OFS) of 2.28 crore equity shares by promoters and other shareholders, with no fresh issue component [7][8]. - The company will not receive any proceeds from the IPO, as the funds will go entirely to the selling shareholders [9]. Group 2: Investor Participation - A diverse group of prominent domestic and global institutional investors participated in the anchor allotment, including Nippon India Mutual Fund, Aditya Birla Sun Life Mutual Fund, and Government Pension Fund Global [2]. - A total of 6,843,900 equity shares were allotted to anchor investors at a price of Rs 730 per share, raising Rs 499.6 crore [4]. Group 3: Company Background - Orkla India, formerly known as MTR Foods, is a multi-category Indian food company that produces a variety of products, including spices, ready-to-eat meals, and breakfast mixes under well-known brands such as MTR and Eastern [9]. - The company is primarily owned by Orkla Asia Pacific Pte. Ltd and Orkla ASA, holding a combined 90% stake, while the Meeran family holds 5% each [8].

Core Viewpoint - Orkla India is launching a ₹1,667-crore public issue, with shares priced between ₹695 and ₹730, aiming for an implied market capitalization of around ₹10,000 crore, while the Norwegian parent company will retain a 75% stake post-listing [1][2]. Financial Performance - At the upper price band, the stock is valued at approximately 39 times FY25 earnings per share, which is over a 50% discount compared to Tata Consumer Products Ltd, indicating a fair valuation rather than a cheap one [2][13]. - The company reported total revenue of ₹2,358 crore and a blended EBITDA margin of 16.6% in FY25, with a decline in net profit from ₹339 crore in FY23 to ₹256 crore in FY25, reflecting a mid-cycle reset rather than steady growth [7][10]. - Despite a 7% fall in price realization due to commodity deflation, spice volumes grew by 5.5%, indicating a potential strengthening of long-term brand loyalty [9][10]. Operational Strengths - Orkla India benefits from a debt-free balance sheet, efficient operations, and a return on capital employed (RoCE) exceeding 30%, supported by heritage brands and a strong market position in South India [3][11]. - The company holds significant market shares in key regions: approximately 31% in Karnataka, 42% in Kerala, and 15% in Andhra Pradesh-Telangana, with South India contributing 70% of overall sales [8]. Product Portfolio - The core business of spices contributes about two-thirds of FY25 revenue, with estimated EBITDA margins in the high teens to low twenties, while the convenience-foods segment accounts for one-third of revenue, operating at lower-teen margins [6][7]. - The company is expanding its product offerings, including convenience foods and blended spices, and aims to enhance brand presence through regional advertising and modern trade [12]. Growth Prospects - Future growth is expected to rely on deeper market penetration, a wider product portfolio, and improved efficiency, with plans to scale up in international markets such as the GCC, US, and Canada [12]. - If Orkla India can sustain 10-12% annual revenue growth and normalize margins, EPS could compound at approximately 12-13% CAGR over FY25-28, suggesting a reasonable forward valuation [14]. Dividend Policy - In March 2025, Orkla India declared its first-ever dividend of ₹600 crore, with a significant portion going to the Norwegian parent company, indicating a strategy to reset the balance sheet before the IPO [16].

Company Overview - Orkla India Ltd. is set to launch its initial public offering (IPO) on October 29, 2025, aiming to raise approximately ₹1,668 crore through an offer-for-sale [1] - The IPO will be priced between ₹695-730 per share and will close on October 31, 2025 [1] Shareholder Structure - The IPO is entirely an offer-for-sale, with promoter Orkla Asia Pacific Pte. Ltd. selling 2.06 crore shares, and two investor shareholders each selling 11.41 lakh shares [2] - Post-issue, the promoter's holding will decrease from 90% to 75%, with the company's market capitalization projected to reach ₹10,000 crore at the upper price band [2] Market Position and Product Range - Orkla India operates in the packaged food segment, offering around 400 products, including spices, masalas, ready-to-eat meals, beverages, and sweets [3] - The company holds significant market shares in the packaged spices market, with 31% in Karnataka and 42% in Kerala as of FY24 [3] Financial Performance - The company reported revenues of ₹2,395 crore in FY25, with EBITDA margins of 16.6% [4] - Over the past three years, Orkla India achieved sales and EBITDA growth of 5% and 12.9% CAGR, respectively, although adjusted profit declined from ₹338 crore in FY23 to ₹289 crore in FY25 due to tax reversals [4] - The company maintains a virtually debt-free balance sheet and generates annual cash flows of ₹300-400 crore [4] Parent Company and Global Presence - Orkla India is backed by Norwegian parent Orkla ASA, which acquired MTR in 2007 and Eastern in 2021 [5] - The company has expanded its reach to over 45 countries, including GCC nations, the US, and Canada [5] Valuation - SBI Securities has assigned a neutral rating to the IPO, valuing the issue at 34.6 times FY25 earnings [5]

The listing marks a rare public market entry by a foreign-owned Indian food company. Orkla India, the local unit of Norway’s Orkla ASA, is targeting a valuation of Sanjay Sharma, MD & CEO of Orkla India, told TOI, “We are a cash-generating company. We do not need a primary. From that point of view, if we have to access the capital markets, the only route is through secondary. The objective of every MNC is to come to India to extract the value out of the India consumption story and by listing, we are going ...

Core Viewpoint - Orkla India is set to debut in the public market on November 6, marking a significant event as it is the first foreign-owned Indian food company to do so in a long time, with a targeted valuation of Rs 10,000 crore at an IPO price of Rs 730 per share [3][5] Company Overview - Orkla India, a subsidiary of Norway's Orkla ASA, is conducting a Rs 1,667 crore IPO, which is entirely an offer for sale (OFS) of up to 2.2 crore shares, with Orkla ASA and Orkla Asia Pacific holding approximately 90% of the company [3][5] - The company emphasizes its cash-generating capabilities and does not require primary capital, indicating that the IPO is a strategic move to access secondary capital markets [3][5] Strategic Intent - The listing is intended to enhance value creation and facilitate more meaningful and competitive acquisitions within India, reinforcing the company's commitment to the Indian market [5] - Orkla India's portfolio has been built through acquisitions, including well-known brands such as MTR Foods, Eastern, and Rasoi Magic, which span the spices and convenience foods segments [4][5]