Orkla India IPO price band: The Orkla India Limited IPO price band has been fixed in the range of ₹695 to ₹730 per equity share of the face value of Re 1. The Orkla India IPO date of subscription is scheduled for Wednesday, October 29, and will close on Friday, October 31. The allocation to anchor investors for the Orkla India IPO is scheduled to take place on Tuesday, October 28.
The floor price is 695 times the face value bearing the equity shares and the cap price is 730 times the face value of the equity shares. The Orkla India IPO lot size is 20 equity shares and in multiples of 20 equity shares thereafter.
Orkla India IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 30,000 equity shares.
Tentatively, Orkla India IPO basis of allotment of shares will be finalised on Monday, November 3, and the company will initiate refunds on Tuesday, November 4, while the shares will be credited to the demat account of allottees on the same day following refund. Orkla India share price is likely to be listed on BSE and NSE on Thursday, November 6.
Orkla India IPO details
The company’s initial public offering (IPO) consists entirely of an Offer For Sale (OFS) involving 2.28 crore equity shares from promoters and other shareholders, without any new shares being issued.
In this OFS, promoter Orkla Asia Pacific Pte, along with shareholders Navas Meeran and Feroz Meeran, are selling their shares.
Currently, promoters Orkla Asia Pacific Pte. Ltd and the Norwegian industrial investment entity Orkla ASA collectively own a 90 percent stake, while both Navas Meeran and Feroz Meeran each hold a 5 percent stake in the firm.
Since this is an OFS, the company will not receive any funds from the IPO, and all proceeds will go to the selling shareholders.
“Given the absence of a fresh-issue component, this listing is largely an exit-route for existing shareholders rather than a capital-growth vehicle for the company. On listing day, strong brand equity and sector tailwinds could drive a positive debut.
Over the long term, value creation will depend on the company’s ability to expand penetration beyond core markets, maintain margin leadership and convert brand strength into sustained earnings growth. Investors looking for listing gains may participate, while long-term investors should watch for execution and margin trends before viewing this as a growth franchise,” said, Harshal Dasani, Business Head, INVasset PMS.
ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company serve as the lead managers for the book-running of the issue.
Company details
Orkla India, which was previously referred to as MTR Foods, is a diverse food company based in India. It produces items like spices and masalas, ready-to-eat meals, sweets, and breakfast mixes, marketed under well-known brands such as MTR, Rasoi Magic, and Eastern.
The company markets its products under the labels MTR and Eastern.
As per the Technopak report, the market for packaged food in India was valued at ₹10,180 billion in Fiscal 2024, showing a compound annual growth rate (CAGR) of 10.8 percent from Fiscal 2019.
As per the red herring prospectus (RHP), the company’s sole peer is Tata Consumer Products Ltd (with a PE of 90.1).
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