Orkla India IPO opens Oct 29: Analysts split on prospects; should you bid?

Orkla India IPO: Orkla India Limited (OIL) is set to launch its initial public offering (IPO) on Wednesday, October 29, 2025. The company aims to raise ₹1,667.54 crore from its maiden public issue. The mainline offering comprises entirely an offer for sale of 22.8 million equity shares. There is no fresh issue component.

 

Orkla Asia Pacific is the promoter selling shareholder. Navas Meeran and Feroz Meeran are other selling shareholders. 

 

The company has reserved not more than 50 per cent of the issue for Qualified Institutional Buyers (QIBs), not less than 15 per cent for Non-Institutional Investors (NIIs), and not less than 35 per cent for retail investors.

Orkla India IPO GMP

On Tuesday, October 28, 2025, the unlisted shares of Orkla India were trading at ₹836, up ₹106 or 14.5 per cent compared to the issue price of ₹106 per share, according to sources tracking unofficial markets.

Orkla India IPO: Here's what the experts say

According to SBI Securities, Orkla India is a virtually debt-free company, makes healthy return ratios & margins and generates stable cash flows of ₹300-400 crore annually. The company's brands MTR and Eastern have a strong market share in Karnataka and Kerala. 

 

Over the last three years, Orkla has delivered Sales/Ebitda/PBT CAGR of 5 per cent/12.9 per cent/22.9 per cent, respectively, while adjusted PAT has declined from ₹338 crore in FY23 to ₹289 crore in FY25 due to tax reversal in FY23.

 

"At the upper price band of ₹730, Orkla India is valued at FY25 PE of 34.6x on post-issue capital. Looking at the historical growth track record of the company, the issue looks fairly valued," the brokerage said in a note.

 

SBI Securities has assigned a 'Neutral' rating to the issue and would like to monitor the performance of the company post-listing.  ALSO READ | Lenskart IPO opens Oct 31; sets price band at ₹382-402: Check key details 

On the other hand, analysts at Arihant Capital recommended a "Subscribe for long term" stance on the issue, saying the company’s business is capital efficient and virtually debt-free, supporting consistent cash flow generation and high margins.

 

At the upper end of the price band, Orkla India is valued at a P/E of 31.68x FY25 earnings, reflecting its category leadership, high-margin economics, and long-term growth visibility, the brokerage added.

 

As of FY25, Orkla India recorded revenue of ₹2,394.7 crore, adjusted Ebitda of ₹396.4 crore (margin: 16.6 per cent), and PAT at ₹255.7 crore (margin: 10.7 per cent). According to Arihant Capital, the company's return ratios remain best-in-class, with ROCE at 32.7 per cent, significantly ahead of sector peers.

Here are the key details of the Orkla India IPO:

The three-day subscription window to bid for the Orkla India IPO will close on Friday, October 31, 2025. The allotment of shares is expected to be finalised on Monday, November 3, 2025. The successful allottees will receive the company's shares in their respective demat accounts on Tuesday, November 4, 2025. 

 

Shares of Orkla India will make their debut on the exchanges, NSE and BSE, tentatively on Thursday, November 6, 2025. 

 

The company has set the price band in the range of ₹695 to ₹730, with a lot size of 20 shares. A retail investor would require a minimum investment of ₹14,600 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar for the issue. ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company are the book-running lead managers. 

 

According to the red herring prospectus (RHP), the company will not receive any fresh funds from the issue, and existing shareholders will sell their stake through the offer.