Orkla India to Go Public with Rs 1,600 Crore IPO

Strategic Insights -

Bengaluru-based Orkla India, the parent entity of MTR Foods, is set to go public by the end of October, with an initial public offering (IPO) size of around Rs 1,600 crore. The IPO will consist entirely of an offer for sale of up to 2.2 crore equity shares, with no fresh issue component. This move comes as Orkla India aims to expand its presence in the packaged foods market. The company's heritage brand, MTR Foods, has a rich history spanning 100 years, serving authentic Indian cuisine.

Key Takeaways:

  • Orkla India, the parent entity of MTR Foods, will go public with an IPO size of Rs 1,600 crore by the end of October.
  • The IPO will consist entirely of an offer for sale of up to 2.2 crore equity shares, with no fresh issue component.
  • The promoter entity, Orkla Asia-Pacific, will offload up to 2 crore shares, while existing shareholders Navas Meeran and Feroz Meeran will each sell up to 11.4 lakh shares.
  • MTR Foods has a diverse portfolio catering to changing consumer needs, from masalas to ready-to-eat products.
  • In FY25, Orkla India's revenue was Rs 2,358 crore, comprising Rs 1,571 crore from spices and Rs 787 crore from convenience foods.
  • The company rebranded from MTR Foods following restructuring and internal mergers, including the amalgamation of Eastern Condiments and Rasoi Magic Foods into the business.
  • Orkla India operates in the packaged foods category and is a fully owned subsidiary of Norway's Orkla through its Asia-Pacific holding arm.

Statistics:

  • Rs 1,600 crore: expected size of the IPO
  • 2.2 crore: number of equity shares on offer
  • Rs 2,358 crore: revenue of Orkla India in FY25
  • Rs 1,571 crore: revenue from spices in FY25
  • Rs 787 crore: revenue from convenience foods in FY25

Sources:

  • TOI (Newspaper)
  • DRHP (Draft Red Herring Prospectus) filed in June.