- MTR Foods parent to open ₹1,667-crore offer-for-sale on October 29; price band set at ₹695–730 per share
- The anchor book will open on October 28
- Bids can be made for a minimum of 20 Equity Shares and in multiples thereof
- A discount of ₹69 per Equity share is being offered to Eligible Employees bidding in the Employee Reservation Portion
- Norway’s Orkla ASA eyes Indian market expansion amid revival in FMCG demand and rising investor appetite
NE BUSINESS BUREAU
AHMEDABAD, OCT 27
Orkla India, the Bengaluru-headquartered FMCG company behind iconic brands such as MTR Foods, Eastern, Rasoi Magic, and Laban, on Monday announced it is gearing up to launch its initial public offering (IPO) on Wednesday, October 29, aiming for a valuation of around ₹10,000 crore. The anchor book will open on Tuesday, October 28.
The three-day issue, closing on Friday, October 31, is entirely an offer-for-sale (OFS) of 2.28 crore equity shares priced between ₹695 and ₹730 per share, with a lot size of 20 shares. The IPO is expected to raise ₹1,667.54 crore, with all proceeds going to the selling shareholders. The Offer for Sale comprises up to 20,560,768 Equity Shares by Orkla Asia Pacific Pte. Ltd; up to 1,141,118 Equity Shares by Navas Meeran and up to 1,141,118 Equity Shares by Feroz Meeran.
According to the red herring prospectus, no fresh equity will be issued in the offer. Key shareholders, including Orkla Asia Pacific, part of the Norwegian parent Orkla ASA, will divest 2.06 crore shares, while the Meeran Group’s Navas Meeran and Feroz Meeran will offload 1.1 lakh shares each.
Bids can be made for a minimum of 20 Equity Shares and in multiples of 20 Equity Shares thereafter;
A discount of ₹69 per Equity share is being offered to Eligible Employees bidding in the Employee Reservation Portion.
Following its acquisition of MTR Foods in 2007 and Eastern Condiments in 2020, Orkla consolidated its Indian operations under Orkla India Pvt. Ltd. in 2023. The IPO marks its first major move to tap India’s booming primary market.
In FY25, Orkla India reported a net profit of ₹255.69 crore on revenues of ₹2,455.24 crore, a 12.97% YoY rise in profit and 2.81% increase in revenue. For the quarter ended June 2025, the company posted a profit of ₹78.92 crore on revenue of ₹605.38 crore.
The company’s financial metrics are strong, with a PAT margin of 10.7%, RoNW of 13.8%, and RoCE of 32.7% — nearly double that of Tata Consumer Products. The stock is reportedly commanding a grey market premium (GMP) of ₹70–75 per share, implying potential listing gains of around 10%.
Orkla India Ltd has reserved 50 per cent of the issue size for the qualified institutional buyer category, 15 per cent for the non-institutional investor category and 35 per cent of the net issue for retail investors.
About 70% of Orkla India’s revenue comes from South India, where it caters to 225 million consumers contributing 30% of India’s GDP. Despite being a market leader in Karnataka, per capita consumption of its products in the region stands at just ₹110, signalling untapped growth potential.
Orkla India owned and operated a total of nine manufacturing facilities across four states, primarily located in South India. Further, as of June 30, 2025, it had arrangements with 21 contract manufacturing facilities, of which 18 are located across seven states in India, and three are located outside India and are operated by third parties. 2.9% YoY growth during the same period to ₹255.69 crore from ₹226.33 crore in FY24.
With organized players covering only 40% of India’s food market, the company sees ample headroom for expansion across categories including spices, ready-to-eat and ready-to-cook products, and packaged foods.
With a strong presence in the south Indian markets, the company also exports to 45 countries, including regions in the Gulf Cooperation Council (GCC), the US and Canada.
Shares of Orkla India will list on both the BSE and NSE on November 6.
ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital are the book-running lead managers, while KFin Technologies serves as the registrar to the issue.
