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Orkla India IPO Listing: Orkla India Ltd, which owns spices and condiments brands MTR and Eastern, on Thursday made a muted market debut with its shares being listed at a premium of nearly 2.75 per cent. On the NSE, the stock is listed at Rs 750 apiece, as compared with the IPO issue price of Rs 730 apiece. Later, the shares declined into the red to trade nearly 1% lower than the issue price at Rs 722, as of 10:16 am. On the BSE, the shares of Orkla India are listed at Rs 751.5, which is 2.95 per cent above the issue price. Later, the stock faced selling pressure. The IPO was open between October 29 and October 31. It received a 48.74x subscription, garnering bids for 77,97,67,200 shares as against the 1,59,99,104 shares on offer. Its retail category has received a 7.06x subscription, while the NII (non-institutional investor) quota has received a 54.42x subscription. The QIB category received a 117.63x subscription. Orkla India Stock Listing: Should You Buy? Brokerages hold mixed views on the Orkla India IPO. According to SBI Securities, the company is virtually debt-free, maintains healthy return ratios and margins, and consistently generates stable cash flows of Rs 300-400 crore annually. Its flagship brands, MTR and Eastern, command a strong presence in Karnataka and Kerala. Over the past three years, Orkla has reported a CAGR of 5% in sales, 12.9% in EBITDA, and 22.9% in PBT. However, its adjusted profit after tax (PAT) fell from Rs 338 crore in FY23 to Rs 289 crore in FY25, primarily due to a one-time tax reversal in FY23. SBI Securities noted that at the upper end of the price band of Rs 730 per share, the IPO is valued at 34.6 times its FY25 earnings on a post-issue basis. The brokerage believes the issue appears fairly valued considering the company’s growth record and has assigned it a ‘Neutral’ rating, preferring to monitor its performance post-listing. In contrast, Arihant Capital has given a ‘Subscribe for long term’ recommendation, citing Orkla India’s capital-efficient and debt-free business model that ensures steady cash flow generation and robust margins. It values the company at a P/E of 31.68 times FY25 earnings, reflecting its leadership in key categories, strong profitability, and long-term growth potential. For FY25, Orkla India posted revenue of Rs 2,394.7 crore, adjusted EBITDA of Rs 396.4 crore (margin of 16.6%), and PAT of Rs 255.7 crore (margin of 10.7%). Arihant Capital highlighted that the company’s return ratios remain among the best in the sector, with ROCE (return on capital employed) at 32.7%, significantly outperforming its peers. Orkla India, formerly known as MTR Foods, is a multi-category Indian food company. It manufactures products as spices and masalas, ready-to-eat, sweets and breakfast mixes, under prominent brands such as MTR, Rasoi Magic, and Eastern. The company sells its products under the brands MTR and Eastern. Orkla India will make its debut on the stock exchanges on November 6.
