Orkla India IPO Day 2 Highlights: Issue booked 2.7x so far — GMP signals 9% listing gains. Time to apply?

Orkla India IPO sailed through on the second day of the book-building process, getting subscribed 2.70 times so far. Here's how different quotas were booked:

QIB: 6%

NII: 7.59x

Retail: 2.11x

Employee: 6.20x

Total: 2.70x

The promoters of the Company are Orkla ASA, Orkla Asia Holding AS, and Orkla Asia Pacific Pte. Ltd.

As of the date of this Red Herring Prospectus, the Promoters collectively hold 123,302,690 equity shares of the Company, each having a face value of ₹1. This aggregate shareholding represents 90.0% of the issued, subscribed, and paid-up equity share capital of the Company.

Orkla India IPO sailed through on the second day of the book-building process, getting subscribed 1.83 times so far. Here's how different quotas were booked:

QIB: 3%

NII: 4.47x

Retail: 1.72x

Employee: 5.43x

The company earns a majority of its revenue from domestic operations, amounting to over 79% as of FY25. Here's the breakdown over the years:

According to the Technopak Report, in Fiscal 2024, Orkla India Limited recorded revenue from operations of ₹23,560 million, placing it among the top four companies within the leading players in the spices and convenience foods segment. The company was the second fastest-growing in terms of EBITDA among select peers between Fiscal 2022 and Fiscal 2024, achieving a CAGR of 20.3%. It was also the second fastest-growing in terms of PAT, with a CAGR of 39.0% over the same period.

The company remains focused on optimising its net working capital cycle, a key driver of liquidity and operational efficiency. Its disciplined working capital management supports sustained growth while minimising capital utilisation.

Overall, Orkla India’s financial performance is marked by expanding margins, prudent working capital management, efficient cash conversion, and strong returns — collectively underscoring its financial resilience and strategic commitment to creating long-term shareholder value.

Orkla India Limited has an extensive pan-India distribution network, comprising 834 distributors and 1,888 sub-distributors across 28 states and six union territories, along with 42 modern trade partners and six e-commerce and quick commerce partners.

According to the Technopak Report, the company’s flagship brands, MTR and Eastern, are the most widely distributed spice brands in Karnataka and Kerala. Of the approximately 300,000 retail outlets selling blended spices in Karnataka and 74,500 outlets in Kerala, MTR and Eastern have a presence in 67.5% and 70.4% of outlets, respectively, compared to the industry average of 30–40%.

Supported by significant marketing investments and a robust distribution network, MTR and Eastern have reached nine out of 10 households through at least one of their products in Karnataka and Kerala, based on household consumption data from January 2024 to December 2024.

The Indian packaged food market was estimated at ₹10,180 billion in Fiscal 2024, reflecting a CAGR of 10.8% compared to Fiscal 2019. India’s packaged food market is evolving with a shift towards branded products, rising demand for convenience and health-focused options, expansion of modern and online retail, a strong preference for regional flavours, and increasing consumer experimentation with new brands and global tastes.

India contributes nearly 70% of global spice production by volume and accounts for approximately 43% of global spice exports by value as of Fiscal 2024.

India’s spices and convenience foods market is witnessing strong growth, driven by evolving consumer preferences, rising incomes, rapidly growing e-commerce/quick-commerce platforms, and rapid urbanisation. The Indian spices market has grown at an approximately 11.5% CAGR to ₹1,230 billion in Fiscal 2024 from Fiscal 2019 and is expected to grow to ₹2,080 billion in Fiscal 2029.

The convenience food market in India is valued at ₹79 billion as of Fiscal 2024 and is projected to reach ₹166 billion by Fiscal 2029, growing at a CAGR of 16%. With a shift toward time-saving meal solutions, the sector is witnessing innovation in product offerings, including healthier alternatives and premiumisation.

With a strong heritage, local flavour expertise, and focus on automation, quality, and brand trust, Orkla India Limited, through its flagship brands MTR and Eastern, is strategically positioned to capitalise on the strong growth in India’s spices and convenience foods sectors. The company aims to enhance its product range presence in retail outlets, expand its distribution network in existing geographies, and extend its presence into new towns and villages, with a particular focus on developing distribution infrastructure in rural areas.

The company will also focus on strengthening its footprint in key global markets with significant demand for authentic South Indian flavours. Investors may consider the IPO as a potential long-term investment opportunity.

Here's a look at the investors who are selling stake via IPO and the number of shares they are offloading.

Since Orkla India IPO is entirely an offer for sale by the promoter and other selling shareholders, the company will not receive any proceeds from the offer. The company said that the objective of the IPO is to achieve the benefits of listing the equity shares on the exchanges.

Orkla India’s product portfolio comprises two key product categories — Spices and Convenience Foods, the latter of which includes RTC foods, RTE foods, vermicelli, and others. Its products cater to every meal occasion, from breakfast and lunch to dinner, snacks, desserts, and beverages.

Details of Orkla India's product categories are set out below:

(1) Spices primarily comprise:

(a) Blended spices (Sambar Masala, Chicken Masala, Puliogare Masala, Rasam Masala, and Meat Masala, among others); and

(b) Pure spices (such as Chilli, Kashmiri Chilli, Turmeric, Coriander, and Cumin, among others).

(2) Convenience Foods primarily comprise:

(a) RTC foods, which include a variety of products that simplify the cooking process and enable quick meal preparation, such as Breakfast Mixes, Sweet Mixes, and Badam Milk beverage mixes;

(b) RTE foods, which are pre-prepared and packaged food products that require minimal to no further cooking or preparation before consumption. These foods are designed for convenience, allowing consumers to enjoy a meal quickly and easily, often by simply heating the product in a microwave or on a stovetop. The RTE range includes traditional Indian dishes such as Paneer Butter Masala, Dal Makhani, and Chana Masala, as well as a variety of rice dishes such as Veg Pulao and Tomato Rice;

(c) Vermicelli, which comprises various preparations of Vermicelli and Macaroni; and

(d) Others, including beverages (such as Badam Drink and Coffee), Pickles, Ginger Garlic Paste, Malabar Parotas, Cooking Aids, Pulses, Rice and Coconut Milk, Confectionery, among others.

Orkla India Limited is a leading multi-category food company with a strong capability in building and scaling trusted household brands. The company leverages a deep understanding of regional tastes and culinary cultures to offer products suited to local preferences. It has an extensive distribution network across India and a growing global presence, ensuring strong market reach.

Orkla India operates modern, large-scale manufacturing facilities with robust quality and supply chain systems. Its strategy is driven by continuous innovation, category expansion, and premiumisation, reinforcing its position as a market leader in India’s packaged food industry.

At the upper price band, the company is valued at a P/E of 31.5x based on its FY26 annualised earnings, with a market capitalisation of ₹1,00,000 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “Subscribe – Long Term” rating for the issue.

Orkla India IPO sailed through on the second day of the book-building process, getting subscribed 1.11 times so far. Here's how different quotas were booked:

QIB: 2%

NII: 2.39x

Retail: 1.16x

Employee: 4.14x

Total: 1.11x

Orkla India IPO opened for bidding for the second day today at 10 am. Investors can place their bids till 5 pm today. As of the first day, Orkla India IPO was booked 78%.

Orkla India IPO GMP today was ₹68. This means shares are trading ₹68 higher than the issue price of ₹730. At the prevailing GMP, Orkla India shares could list at ₹798, a premium of 9%.