Orkla India Ltd, the owner of beloved food-brands such as MTR and Eastern, has opened its initial public offering (IPO) with a price band of ₹695 to ₹730 per share and a total issue size of ₹1,667.5 crore via a 100% offer-for-sale (OFS) of 2.28 crore shares. The subscription window runs from 29 October to 31 October 2025 with the shares expected to list around 6 November 2025.
In the grey market, the IPO is receiving strong interest, with premium reported at approximately ₹106 per share, suggesting an implied listing price near ₹836 and a potential gain of about 14.5% for investors subscribing at the upper band.
On valuation, at the ₹730 band the company is valued at about ₹10,000 crore, which works out to a price-to-earnings (P/E) multiple of roughly 31.7 × based on FY2025 earnings — seen by many analysts as reasonable given Orkla’s strong brand presence, high-margin business and virtually debt-free balance sheet.
Strengths highlighted include dominant regional market shares of 31%-42% in key states, a national reach in convenience foods, exports to 40+ countries, and an asset-light manufacturing model. On the flip side, the absence of any fresh capital being raised (since it’s a complete OFS) is flagged as a risk by some, and the recent muted revenue growth (≈1.6% in FY2025) is a point of caution.
In summary, analysts suggest that long-term investors with conviction in India’s growing branded-foods market may consider subscribing, but those seeking short-term gains should weigh the risks given the fully priced nature of the issue.
