Orkla India IPO: A New Opportunity for Investors
Orkla India Ltd., the owner of popular spices and condiments brands MTR and Eastern, has announced the price band for its upcoming initial public offering (IPO). The IPO will open for subscription on October 29 and close on October 31, with investors able to bid in the range of Rs 695 to Rs 730 per share.
Key Details of the Orkla India IPO
The minimum bid lot size is 20 shares, requiring an investment of Rs 13,900 at the lower price band and Rs 14,600 at the upper price band. The company will invite bids from large institutions via the anchor round on October 28. The allotment of shares to IPO investors will be done tentatively on November 3, with Orkla India set to list on the BSE and NSE on November 6.
Orkla India has offered to sell 2.28 crore shares worth up to Rs 1,667 crore via an offer for sale (OFS). Promoter Orkla Asia Pacific, along with public shareholders Navas Meeran and Feroz Meeran, will participate in the OFS. Currently, Orkla Asia Pacific Pte owns a 90% stake in the company, while Navas Meeran and Feroz Meeran hold 5% each.
What is an Offer for Sale (OFS)?
An OFS is a process by which existing shareholders of a company can sell their shares to the public. In this case, the selling shareholders will receive the entire amount of money from the IPO, with the company not receiving any proceeds. To know more about OFS and how it works, you can check our article on Offer for Sale (OFS).
About Orkla India
Orkla India is a multi-category food company deeply rooted in South Indian cuisine. It manufactures products such as spices and masalas, ready-to-eat sweets, and breakfast mixes under prominent brands like MTR, Rasoi Magic, and Eastern. The company has a portfolio of over 400 products across these categories. As of March 31, 2025, the company’s network comprised 843 distributors and 1,800 sub-distributors across 28 states and five union territories.
Orkla India is a subsidiary of Orkla ASA, a Norway-listed industrial, long-term investment company focused on brands and consumer-oriented companies. The company’s leadership team has a strong track record of driving growth and expansion in the food industry. To know more about the company’s business model and growth prospects, you can check our article on Orkla India Business Model.
Lead Book Running Managers to the IPO
ICICI Securities Ltd., Citigroup Global Markets India Pvt., J.P. Morgan India Pvt., and Kotak Mahindra Capital Co. are the lead book running managers to the IPO. These institutions have a strong track record of managing successful IPOs in the Indian market. To know more about the role of lead book running managers in an IPO, you can check our article on Lead Book Running Managers.
Investment Rationale
Orkla India’s IPO offers investors an opportunity to participate in the growth story of a well-established food company with a strong brand presence in South India. The company’s diversified product portfolio, extensive distribution network, and experienced leadership team are key positives. However, investors should also consider the risks associated with the IPO, such as market volatility and competition from other food companies. To know more about the risks and rewards of investing in an IPO, you can check our article on IPO Investing Risks and Rewards.
Conclusion
Orkla India’s IPO is a significant event in the Indian stock market, offering investors a chance to invest in a well-established food company with a strong brand presence. With a price band of Rs 695-730 per share, the IPO is expected to generate significant interest among investors. However, it is essential to do your own research and consider the risks and rewards before investing in the IPO. To stay updated with the latest news and analysis on the Indian stock market, you can check our website and follow us on social media.
