The initial public offering (IPO) of MTR Foods and Kerala-born Eastern Condiments’ parent company, Orkla India, crossed the full subscription mark on October 30, powered mainly by individual investors. The three-day issue, which opened on October 29, saw bids for 2.46 crore shares against 1.59 crore shares available — a subscription rate of 1.54 times by 12.40 pm.
Retail investors subscribed 1.53 times their quota, while non-institutional investors (NIIs) overshot their portion 3.57 times. The employee category saw an impressive 5.02 times subscription, but institutional buyers remained largely cautious, with qualified institutional bidders (QIBs) applying for only 3% of their reserved shares.
Priced in the range of ₹695–730 per share, Orkla India aims to raise ₹1,667.54 crore entirely through an offer-for-sale (OFS) of 2.28 crore shares by existing promoters and shareholders. Investors can apply for a minimum of 20 shares and its multiples thereafter.
Brokerage houses remain cautiously optimistic. They note Orkla India’s legacy in South Indian kitchens through brands like MTR, Eastern and Rasoi Magic, while also flagging short-term challenges such as negative cash flows and the OFS structure, which leaves limited room for immediate gains.
The IPO marks a major milestone for the Meeran brothers of Kerala, the founders of Eastern Condiments, who are among those offloading their stake as part of Orkla India’s ₹1,667.54 crore offer-for-sale (OFS). Priced between ₹695 and ₹730 per share, the issue involves 2.28 crore shares offered entirely by existing promoters and shareholders. Investors can apply for a minimum of 20 shares and its multiples thereafter.
Brokerage houses are mostly optimistic but maintain a cautious tone. They note Orkla India’s strong hold in the southern food market, backed by iconic brands like MTR, Eastern and Rasoi Magic, while pointing out that short-term cash flow concerns and the full OFS structure limit immediate upside.
Founded in 1996 and headquartered in Bengaluru, Orkla India has blended its regional legacy with modern manufacturing. Its portfolio, deeply rooted in South Indian kitchens, ranges from spice powders and ready-to-cook meals to snacks and beverages. Master Capital Services said Orkla India is “strategically positioned” to ride India’s growing appetite for packaged and convenience foods. The firm also noted the company’s plans to expand its reach in rural India and strengthen its global footprint for authentic South Indian flavours.
Ahead of the IPO, Orkla India raised ₹499.6 crore from 30 institutional investors by allotting 68.43 lakh shares at ₹730 each. Of the total offer, 50% is reserved for QIBs, 15% for NIIs, and 35% for retail investors.
Geojit Financial Services valued the IPO at a price-to-earnings ratio of 31.7 times (FY26E annualised), calling it “fairly priced” compared to peers. The brokerage issued a ‘subscribe for long-term’ recommendation, highlighting Orkla India’s strong balance sheet, supportive policy environment, and demand revival.
The company reported a net profit of ₹78.92 crore on revenue of ₹605.38 crore for the quarter ended June 2025. For FY25, it posted a profit of ₹255.69 crore on ₹2,455.24 crore revenue. In the grey market, the IPO is reportedly trading at a premium of ₹65–70 per share, hinting at a possible 8–9% listing gain.
Shares of Orkla India are scheduled to list on BSE and NSE on November 6. Kotak Mahindra Capital Company, ICICI Securities, Citigroup Global Markets India and JP Morgan India are the book-running lead managers, while Kfin Technologies is the registrar.
For Kerala, this IPO also represents the continued journey of the Meeran brothers’ legacy — from a homegrown spice brand in Kochi to a multinational household name now stirring up interest across India’s stock markets.
