Orkla India IPO: Leading food brand, hidden risks; what you should know

Orkla India IPO worth ₹1,667.54 crore comprises an offer for sale (OFS) of 22.8 million equity shares.

Orkla India IPO: The initial public offer (IPO) of Orkla India, parent company of packaged foods manufacturer MTR Foods, will open for bidding on Wednesday, October 29, 2025. The public issue worth ₹1,667.54 crore comprises an offer for sale (OFS) of 22.8 million equity shares. There is no fresh issue component. Orkla Asia Pacific is the promoter selling shareholder, while Navas Meeran and Feroz Meeran are other selling shareholders. 

 

The three-day subscription window is scheduled to close on Friday, October 31, 2025. The basis of allotment of shares is likely to be finalised on Monday, October 3, 2025. The stock will be listed on the National Stock Exchange (NSE) and BSE, tentatively on Thursday, November 6, 2025. 

 

 

Orkla India IPO is available at a price band of ₹695 to ₹730 per share, with a lot size of 20 shares. 

 

Kfin Technologies is the registrar of 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.  

Here are the key risks associated with investing in the Orkla India IPO:

Exposure to material price fluctuations: The company’s operations are exposed to fluctuations in the prices of raw materials and packaging materials. Any inability to procure these materials at competitive prices could negatively impact the company’s business, financial condition, cash flows, and operating results.

 

Product safety and contamination risk: The company’s operations could be impacted by improper processing or storage of its products or raw materials, spoilage or damage, or any real or perceived contamination. Such incidents may result in regulatory action, harm the company’s reputation, and negatively affect its business performance.

 

Supplier dependence risk: The company relies on its suppliers, with the top ten suppliers accounting for 37.9 per cent of raw material purchases in the three months ended June 30, 2025, and 33.7 per cent in fiscal 2025. Any loss of suppliers or delays in the timely delivery of supplies could negatively impact the company’s business performance

 

Risks from third-party restaurant operations: A third-party-owned and operated restaurant chain has the right to use the trade name “MTR” for its business operations. Any negative publicity or quality issues related to this restaurant chain could adversely affect the company’s business performance, financial condition, cash flows, and results of operations.

Here are the key competitive strengths of Orkla India, as outlined in the RHP:

Strong brand equity in local flavours: The company is a market leader in household food brands, leveraging deep insights into local tastes. Its MTR and Eastern brands hold significant market share in South India’s packaged spices segment, with MTR catering to vegetarian cuisine and Eastern to non-vegetarian dishes. Regional flavour expertise and customised products further strengthen its market position.

 

Multi-category food company: The company drives product innovation to meet evolving customer needs through enhanced recipes, new formats, and novel preparation methods. Recent launches include MTR Minute Fresh batters, Ready-to-Eat sweets, the 3-Minute Breakfast range, and a Pan-Asian cuisine line under the new brand “Wok N Roll” launched in January 2025.

 

Strong regional presence: The company has a pan-India distribution network comprising 834 distributors, 1,888 sub-distributors, 42 modern trade partners, and six e-commerce/quick commerce partners. According to the Technopak Report, its MTR and Eastern brands are the most widely distributed spices in Karnataka and Kerala, reaching 67.5 per cent and 70.4 per cent of retail outlets, well above the industry average of 30–40 per cent. 

 

Efficient manufacturing and robust supply chain: The company operates nine modern manufacturing units in India with a total capacity of 182,270 TPA, supported by a strong supply chain. Key facilities, such as Bommasandra, Bengaluru, feature largely automated processes and IoT-enabled machinery, enhancing efficiency, productivity, quality, and safety across production and packaging.