The maker of India's beloved MTR Foods is all set to make its grand entry on Dalal Street. Orkla India Ltd., backed by Norwegian giant Orkla ASA, opened its initial public offering (IPO) for subscription on October 29, giving investors a fresh chance to be part of India's fast-growing packaged food story. The issue will remain open till October 31.

The company plans to raise Rs 1,667.54 crore through an offer for sale (OFS) of 2.28 crore shares. Since this is a pure OFS, Orkla India won't get any new funds, the proceeds will go to existing shareholders looking to trim their stakes.

Analysts Divided, But Long-Term Story Looks Solid

Brokerages are split in their initial reviews, some are taking a cautious stance, while others see long-term potential.

SBI Securities believes the issue is fairly valued, giving it a 'Neutral' rating. The brokerage said investors could wait and watch how the stock performs after listing before making a move.

On the other hand, Angel One has gone bullish, recommending investors to 'Subscribe'. The firm said that at the upper price band of Rs 730, Orkla India's valuation, a P/E of around 31.68x, looks reasonable given its strong brand portfolio, healthy financials, and steady growth record.

Anand Rathi also sees promise, suggesting investors subscribe for the long term.

Echoing this sentiment, Mehta Equities' Rajan Shinde pointed out that Orkla India enjoys a strong hold in India's packaged foods and spices market, led by iconic brands MTR and Eastern. Together, they command an impressive 31–42% market share in key southern states and 18.6% nationwide in the convenience foods segment. He added that India's rapidly expanding packaged food industry could help the company deliver strong long-term returns.

Grey Market Buzz

Ahead of the listing, Orkla India's shares are creating a quiet buzz in the grey market, trading at a premium of about 11% over the issue price of Rs 730 per share.

Analysts, however, caution that the grey market premium (GMP) only reflects early investor sentiment and could fluctuate as the IPO progresses.

IPO Details: Pricing, Lot Size, and Valuation

The IPO has been priced in the range of Rs 695–Rs 730 per share. The minimum bid is one lot of 20 shares, which means investors need at least Rs 14,600 to participate at the upper band.

At the top end of the price range, Orkla India is valued at 39x its FY25 expected earnings per share (EPS).

The company, which offers more than 400 products across categories like spices, instant mixes, and ready-to-eat meals, is currently one of the top four players in India's packaged food segment by revenue (as of FY24).

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