From Kitchens to Capital Markets: MTR Parent Orkla India Files for IPO

Orkla India, which owns the foods product companies MTR Foods and Eastern Condiments, has announced its plans to become a publicly listed company. The homegrown FMCG powerhouse has filed its Draft Red Herring Prospectus (DRHP) with SEBI, setting the stage for its Initial Public Offering (IPO), which will be an offer-for-sale (OFS) of up to 2.28 crore equity shares.

Orkla India IPO: Issue size and capital structure

The IPO, estimated to be worth around Rs 2,280 crore, will not involve any fresh issue of shares. On the contrary, its existing shareholders—including Norway-based parent Orkla Asia Pacific Pte Ltd (which holds a 90% stake) and Indian promoters Navas and Feroz Meeran (5% each)—will be reducing their holdings via the OFS route.  The move is aimed at unlocking value and providing liquidity to long-term investors.

As per the DRHP, 50% of the offer is reserved for Qualified Institutional Buyers (QIBs), 35% for retail bidders, and the remaining 15% for Non-Institutional Investors (NIIs).

Also Read: FMCG industry expects boost in consumer demand amid improving macros | Republic World

Orkla India IPO: Listing plans 

The listing will take place on both the NSE and BSE. ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company are the book-running lead managers to the issue. 

Orkla India IPO: Usage of proceeds

While the company clarified that the IPO proceeds won’t be used to fund business expansion directly. Given the OFS nature of the Orkla IPO, the entire proceeds will go to the selling shareholders, and the company will not receive anything. 

About the company

Orkla, formerly known as MTR Foods, is a multi-category Indian food company, specializing in South Indian cuisine. It offers various products for breakfast, lunch, snacks, dinner, beverages and desserts. The key product categories include spices and convenience Foods. Its products are marketed under its brands MTR and Eastern.