Orkla India Limited, the Indian arm of the Norwegian conglomerate Orkla ASA and the parent company of iconic MTR Foods, has officially set its IPO price band at Rs 695-730 per share. At the upper end, the company is aiming for a valuation of approximately Rs 10,000 crore ($1.14 billion).
The IPO marks a significant milestone for Orkla India as it prepares to enter the public markets. Here's a detailed breakdown of the offering, the company’s background, and its position in India’s fast-growing packaged food sector.
Market Performance
- Orkla India’s IPO opens for public bidding on October 29 and closes on October 31.
- The company aims to raise around Rs 1,667 crore through this public offering.
- The entire issue is an OFS by existing promoters, meaning all proceeds go to the sellers, not the company.
This IPO arrives amid growing interest in India’s packaged food sector, which continues to see double-digit growth.
IPO Structure and Investor Details
Orkla India has structured the IPO to ensure participation from multiple investor categories:
- Offer for Sale (OFS):
- Orkla Asia Pacific will sell up to 2.1 crore shares.
- Existing shareholders Navas Meeran and Feroz Meeran will sell 11.41 lakh shares each.
- Investment Details:
- Minimum bid: 20 shares per lot, costing approximately Rs 14,600 per lot.
- Allocation: 50% QIBs, 35% retail investors, 15% non-institutional investors (NII).
- Regulatory Approval:
- Received SEBI clearance on September 15.
- Draft Red Herring Prospectus (DRHP) filed earlier in June.
- Promoter Holding:
- Orkla Asia Pacific Pte Ltd and Orkla ASA hold 90% combined stake.
- Navas Meeran and Feroz Meeran hold 5% each.
- Book Running Lead Managers: ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, JP Morgan India.
- Legal Counsel: Shardul Amarchand Mangaldas
Company Overview: Orkla India
Orkla India is a multi-category packaged food company, with products spanning:
- Spices and masalas
- Ready-to-eat sweets
- Breakfast mixes
Company milestones:
- 2007: Orkla entered India by acquiring MTR Foods.
- 2012: Acquisition of Eastern Condiments, a Kerala-based spice maker.
- 2023: Consolidation of all three Indian business units—MTR, Eastern, and international operations—into a single entity, Orkla India.
The company operates under a diversified model, focusing on both core staples and innovative ready-to-eat products.
Indian Packaged Food Market
According to Technopak, the Indian packaged food market:
- Estimated at Rs 10.18 lakh crore in FY24
- CAGR of 10.8% from FY19
This growth provides a strong backdrop for Orkla India’s IPO and reflects the increasing demand for packaged foods, spices, and ready-to-eat meals across urban and semi-urban markets.
Parent Company: Orkla ASA
Orkla ASA, headquartered in Oslo, Norway, operates in:
- Branded consumer goods
- Aluminium products
- Financial investments
Key data points:
- Listed on the Oslo Stock Exchange
- Market capitalization: $10.6 billion as of October 22
- Presence across Norway, Sweden, Denmark, Finland, Iceland, Baltics, Europe, and international markets
Orkla ASA has consistently focused on building strong, consumer-oriented brands and expanding its footprint globally.
Summary
Orkla India’s IPO is an important step in consolidating its position in India’s packaged food market. By offering shares via OFS, the company allows promoters to partially exit while positioning the firm in the public market spotlight.
Key Takeaways:
- IPO Price Band: Rs 695-730 per share
- Valuation Target: Rs 10,000 crore ($1.14 billion)
- IPO Size: Rs 1,667 crore through OFS
- Promoter Stake Post-IPO: 90% combined
With a strong brand portfolio, growing market demand, and strategic consolidation, Orkla India is set to make a significant mark on the Indian public markets.
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