If you’ve ever enjoyed MTR dosas or Eastern spices, you’re about to get a chance to own a piece of the company behind these iconic brands. Orkla India is launching its Rs 1,667 crore IPO on October 29, and the grey market signals are already generating buzz among retail investors.
Table of Contents
Orkla India IPO: Quick Facts at a Glance
| Detail | Information |
|---|---|
| Price Band | Rs 695-730 per share |
| Issue Size | Rs 1,667 crore |
| Issue Type | 100% Offer For Sale (OFS) – 2.28 crore shares |
| Subscription Opens | October 29, 2025 |
| Subscription Closes | October 31, 2025 |
| Anchor Bidding | October 28, 2025 |
| Allotment Date | November 3, 2025 (expected) |
| Listing Date | November 6, 2025 (BSE & NSE) |
| Expected Valuation | Approximately Rs 10,000 crore |
| GMP Today | Rs 60 per share (8.22% premium) |
What Makes This IPO Different?
Here’s something crucial to understand: This is a complete Offer For Sale, meaning Orkla India won’t receive a single rupee from the IPO proceeds. All the money goes directly to selling shareholders, including the promoter. This isn’t necessarily bad—it simply means existing stakeholders are partially exiting while the company doesn’t need fresh capital for expansion.
For investors, this raises an important question: Is the company performing well enough that current owners want to book profits, or does it have strong fundamentals that justify new investment? The grey market seems optimistic, with shares trading at a Rs 60 premium, suggesting an estimated listing price of Rs 790—an 8.22% gain over the upper price band.
According to market tracking platform Investorgain, this grey market premium indicates positive sentiment, though these unofficial markets don’t guarantee actual listing performance.
Behind the Brands: What Does Orkla India Actually Do?
Orkla India, formerly MTR Foods, is a household name you probably didn’t realize you knew. The company manufactures and markets food products across multiple categories under three powerhouse brands:
MTR: Known for ready-to-eat meals, breakfast mixes, and the famous MTR restaurants that have been serving South Indian cuisine since 1924.
Eastern: A beloved spice and masala brand particularly popular in South and East India.
Rasoi Magic: Convenient cooking solutions for modern kitchens.
From spices and masalas to ready-to-eat meals, sweets, and breakfast mixes, Orkla India has built a diversified portfolio catering to India’s evolving food consumption patterns. As lifestyles become busier and convenience becomes king, companies in this space are experiencing steady growth.
For those tracking how consumer behavior is shaping business opportunities in India, this trend mirrors developments across sectors—including how digital entertainment and gaming are transforming consumer engagement.
The Investment Banking Powerhouses Behind the IPO
Orkla India has assembled an impressive lineup of book-running lead managers: ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company. This marquee lineup suggests confidence in the issue’s reception and provides institutional credibility.
These financial institutions will handle everything from pricing strategy to ensuring smooth allotment and listing processes. According to SEBI guidelines, such lead managers play a crucial role in investor protection and market integrity during public offerings.
Should You Apply? Key Considerations
Before clicking that “apply” button, consider these factors:
The Positive: Strong brand recognition, established market presence, diversified product portfolio, and a growing consumer foods market in India. The grey market premium suggests investor interest.
The Caution: No fresh capital infusion means no new projects or expansion from IPO proceeds. You’re essentially buying shares from existing holders rather than funding company growth. Also, grey market premiums are unofficial and don’t guarantee listing gains.
The Timeline: With just three days for subscription (October 29-31) and listing expected by November 6, you have limited time to research. The NSE and BSE websites will have the official Red Herring Prospectus with complete financial details.
What Happens Next?
Anchor investors get first dibs on October 28, often signaling institutional appetite. If anchor subscription is strong, retail enthusiasm typically follows. The allotment process on November 3 will reveal who gets shares, and by November 6, we’ll see if the grey market premium translates to actual listing gains.
For retail investors, this represents an opportunity to own part of India’s FMCG sector through brands that have been kitchen staples for decades. Whether that translates to good returns depends on your investment horizon and risk appetite.
Frequently Asked Questions
What is an Offer For Sale (OFS) and how does it differ from a fresh issue?
An Offer For Sale means existing shareholders are selling their shares to the public, and the company doesn’t receive any money from the IPO. In contrast, a fresh issue involves the company creating new shares and raising capital for business expansion, debt repayment, or other corporate purposes. With Orkla India’s 100% OFS structure, all Rs 1,667 crore will go to selling shareholders (including the promoter). This isn’t inherently negative—many profitable companies do OFS IPOs—but it means you’re not funding new growth; you’re buying from current owners who are partially exiting their investment.
What does Grey Market Premium (GMP) mean and how reliable is it?
Grey Market Premium is the unofficial premium at which IPO shares trade before their official listing on stock exchanges. A GMP of Rs 60 means shares are trading Rs 60 above the issue price in this unofficial market. While GMP can indicate investor sentiment, it’s not regulated by SEBI, involves no guarantees, and can be manipulated. Actual listing prices often differ from GMP predictions. Many IPOs with strong GMPs have listed below expectations, while some with modest GMPs have surged. Use GMP as one data point among many, not as the sole decision-making factor for your investment
.
