#OrklaIndiaIPO #MTRFoods #EasternCondiments #IPO #StockMarketIndia #IndianFMCG #MNCListing #Rs10000CrValuation #CapitalMarket #InvestInIndia
Mumbai: The Indian arm of the Norwegian industrial giant Orkla, Orkla India Limited—parent to cherished household brands like MTR Foods, Eastern Condiments, and Rasoi Magic—is set to tap the booming Indian primary market with an Initial Public Offering (IPO) valued at approximately Rs 1,660 crore. Industry sources confirm the public subscription is likely to open between October 29 and October 31, with the anchor investor bidding slated for October 28.
The much-anticipated public offering, an entirely Offer For Sale (OFS) of 2.28 crore equity shares, has reportedly settled on a final post-money valuation of around Rs 10,000 crore (or approximately $1.13 billion) at the upper end of the price band. This valuation underscores the strong investor appetite for well-established players in India’s rapidly growing packaged food market.
Complete OFS Structure Confirmed
The IPO is structured as a complete OFS, meaning the entire proceeds will go to the selling shareholders and will not involve any fresh issue of capital to the company. The sale will see a total dilution of around 16.6 per cent stake in the company.
Key selling shareholders participating in the OFS include the promoter, Orkla Asia Pacific Pte, along with other shareholders, Navas Meeran and Feroz Meeran. Promoter group entities, Orkla Asia Pacific Pte Ltd and Orkla ASA, currently hold a collective 90 per cent stake, while the Meeran shareholders each hold a 5 per cent stake.
The move marks another significant instance of a multinational corporation (MNC) choosing the domestic stock exchange to unlock shareholder value. It follows the recent, unprecedented success of LG Electronics India, whose Rs 11,607 crore IPO—also a complete OFS—crossed the phenomenal Rs 4 lakh crore-mark in subscription and saw a spectacular 48 per cent listing gain, setting a new benchmark for billion-dollar IPO debuts in India. Other MNC listings like Hyundai Motors India and Carraro India, with planned issues from firms like Carlsberg India, Versuni (formerly Philips Domestic Appliances), and Tenneco India, highlight a clear trend of global companies leveraging India’s vibrant capital market.
A Consolidated Food Giant
Orkla’s journey in India began in 2007 with the acquisition of MTR Foods. It further strengthened its position in 2012 by acquiring Kerala-based spice major Eastern Condiments. A strategic restructuring in 2023 saw the consolidation of MTR, Eastern, and its international business under the single unified entity, Orkla India Limited.
Today, Orkla India stands as a formidable multi-category food company, offering a diverse portfolio of approximately 400 products, including ready-to-eat sweets, breakfast mixes, and an extensive range of spices and masalas. The company is poised to capitalize on India’s packaged food market, which a Technopak report estimates at a mammoth Rs 10.18 lakh crore in FY24, growing at a robust CAGR of 10.8% since FY19.
The company received the regulatory go-ahead from SEBI for the IPO on September 15, having filed its draft prospectus earlier in July. The issue is being managed by a high-profile consortium of Book-Running Lead Managers, including ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, and JP Morgan India.
Looking ahead, the Norwegian parent, Orkla ASA (listed on the Oslo Stock Exchange with a market cap of $10.6 billion), has clearly articulated its strategy for its Indian arm for 2024-2026. This focuses on further strengthening its core market positions in spices and spice blends, while concurrently driving innovation in the convenience food categories like breakfast, sweets, and ready-to-cook meals. The strategy also includes a disciplined approach to exploring value-creating investment and M&A opportunities, signalling a sustained commitment to aggressive growth in the Indian market. The Orkla India IPO is thus not just a divestment but a clear declaration of intent to cement its position as a leading packaged food player in the country.
#OrklaIndiaIPO #MTRFoods #EasternCondiments #IPO #StockMarketIndia #IndianFMCG #MNCListing #Rs10000CrValuation #CapitalMarket #InvestInIndia
