Orkla India (MTR Foods Parent) IPO Opens Today to Raise Over ₹1,600 Crore

Orkla India Limited, the holding company for popular Indian brands such as MTR Foods and Eastern Condiments, has commenced its Initial Public Offering (IPO) today, October 29, with subscriptions closing on October 31. The IPO aims to raise ₹1,667.54 crore via an Offer for Sale (OFS), which means existing shareholders, including Orkla ASA, will be selling their stakes. No new capital will be infused into the company. The price band for the IPO is set between ₹695 and ₹730 per share, with a minimum investment of ₹14,600 for one lot of 20 shares.

Analyst sentiment is divided but leaning positive. SBI Securities has maintained a 'Neutral' rating, considering the IPO fairly valued. However, Angel One recommends a 'Subscribe' rating, citing Orkla India's strong market position in the FMCG sector, diversified product portfolio, and promising growth prospects, valuing it at a reasonable P/E of 31.68x post-IPO. Anand Rathi also suggests a 'Subscribe for long term,' acknowledging the IPO is fully priced. Mehta Equities recommends 'Subscribe,' highlighting the strong market share of MTR and Eastern brands in key southern states and the overall convenience foods segment.

The grey market indicates positive initial sentiment, with Orkla India shares trading at a premium of approximately 11% over the issue price. The company, which entered India in 2007 and expanded through acquisitions, derives about 66% of its revenue from spices and the rest from convenience foods. Despite recent moderated growth, it reported strong volume growth in Q1 FY26. The company boasts low debt and healthy cash flow.

Shares are expected to list on the NSE and BSE on November 6, 2025.

Impact This IPO launch is significant for the Indian stock market, especially the FMCG sector. It offers investors a chance to invest in established brands and can potentially boost investor sentiment for similar companies. Rating: 7/10.

Difficult Terms:

* **Initial Public Offering (IPO):** The first time a private company sells its shares to the public, allowing it to be traded on a stock exchange. * **Offer for Sale (OFS):** A process where existing shareholders sell their shares to the public, without the company itself raising any new funds. * **Grey Market Premium (GMP):** The price of a company's shares in the unofficial market before they are listed on a stock exchange, reflecting early investor demand. * **CAGR (Compound Annual Growth Rate):** The average annual growth rate of an investment over a specific period, assuming profits are reinvested. * **Fiscal Year (FY):** A 12-month accounting period. In India, it typically runs from April 1 to March 31. * **P/E (Price-to-Earnings Ratio):** A valuation metric that compares a company's stock price to its earnings per share, indicating how much investors are willing to pay for each unit of earnings. * **EPS (Earnings Per Share):** A company's net profit divided by the number of its outstanding common shares, indicating profitability per share.