Orkla India IPO: Know Key Details About FMCG Company’s Public Issue From RHP

Orkla India IPO is scheduled to open for subscription on October 29. The fast-moving consumer goods company's public issue will close for subscription on October 31. Here’s a look at some of the key details of the multi-category food seller’s peers, financials, strengths and risks before it opens for subscription:

Orkla India IPO GMP

Orkla India IPO GMP is ranging between Rs 695 to Rs 730 per share on October 25 according to multiple websites which monitor the movement of unlisted shares on the grey market. Based on the premium, shares of the FMCG company can list at Rs 870 apiece with potential listing gains of 19.18 per cent.

Orkla India IPO: Offer Size, Listing Date, Price Band

Orkla India IPO offer size aggregates to Rs 1,667.54 crore. The FMCG company’s issue consists of a pure offer-for-sale of 22.8 million shares. Orkla India IPO price band has been fixed at Rs 695 to Rs 730 per share. The minimum lot size to apply for Orkla India IPO for retail investors has been set at 1 lot consisting of 20 shares aggregating to a minimum investment of Rs 14,600.

The basis of allotment for Orkla India IPO is expected to be determined on November 3. Once the share allotment status of Orkla India IPO is decided, successful bidders will receive shares of Orkla India in their demat accounts on November 4. Orkla India shares are slated to list on the BSE and NSE. Orkla India IPO listing date is November 6.

Orkla India: Key Financials

Orkla India Ltd’s total income for the June quarter of FY25 stood at Rs 605.38 crore, the company’s profit-after-tax stood at Rs 78.92 crore and the company’s net worth stood at Rs 1,931.12 crore.

Orkla India’s total income increased by over 2.8 per cent to Rs 2455.24 crore in the financial year ended March 31, 2025 compared to Rs 2387.99 crore in the preceding fiscal. The company’s profit-after-tax for FY 2024-25 stood at Rs 255.69 crore increasing by over 12.97 per cent compared to a net profit of Rs 226.33 crore in FY 2023-24.

Orkla India: Business Model

Orkla India Ltd operates as a multi-category Indian food seller. The company sells its products under the MTR and Eastern brand names. The company is a subsidiary of Orkla ASA, a Norway-listed industrial, long-term investment company which has a focus on brands and consumer-oriented companies. Orkla India Ltd sells products across categories such as blended spices, pure spices, ready-to-cook (RTC) and ready-to-eat (RTE) foods. The company mentioned in its RHP that it caters to local taste preferences of consumers and large distribution networks in its core markets of Karnataka, Kerala, Andhra Pradesh and Telangana. The company also operates in the international markets, catering to the needs of Indian diaspora across the globe.

Orkla India: Competitors

As per Orkla India’s RHP it faces intense competition from domestic and multinational companies in India. Some of the major competitors of the company include Everest Food Products Private Limited, Tata Consumer Products Ltd, Aachi Masala Foods Private Ltd and Shubham Goldiee Masale Private Ltd.

Orkla India IPO: Risks and Strengths

Orkla India’s business faces these risks as per the company’s RHP:

• Orkla India mentioned in its red-herring prospectus that its operations are subject to volatility in the pricing of raw materials and packaging materials. The company added that potential inability to procure the raw materials and packaging material at competitive prices, may adversely affect its business.

• Orkla India Ltd mentioned in its RHP that it derives a significant portion of its revenue from sale of products to customers outside India (20.4 per cent and 20.6 per cent in the three months ended June 30, 2025 and in Fiscal 2025). Thus inability to manage exports can adversely affect the company’s business.

• The multi-category food retailer mentioned that the sale of its products is concentrated in South India (contributing to 70.0 per cent and 70.2 per cent of revenue from sale of products in the three months ended June 30, 2025 and in Fiscal 2025). Thus the company may be adversely affected by any potential disturbances in the region.

Here’s a look at some of the key strengths of Orkla India according to the company’s RHP:

• Orkla India claims in its RHP that it is a market leader with the ability to build and scale household food brands through an in-depth understanding of local consumer tastes.

• The company claims to have an extensive distribution infrastructure with deep regional network and wide global reach.

• Orkla India claims that it has efficient, large-scale manufacturing facilities with stringent quality control and a robust supply chain.

Orkla India IPO: Objective

The objective of Orkla India IPO is to provide promoters and shareholders a chance to pare their stake. The company also expects to benefit from listing its shares on the exchanges.