Orkla India, which owns spices and condiments brands MTR and Eastern, has filed preliminary papers with markets regulator Sebi for an initial public offering (IPO).
The company’s IPO is a complete offer for sale (OFS) of 2.28 crore equity shares by promoter and other shareholders, according to the draft red herring prospectus (DRHP) filed on Tuesday.
Under the OFS, promoter Orkla Asia Pacific Pte and shareholders Navas Meeran and Feroz Meeran are offloading shares.
Since the IPO is structured entirely as an OFS, Orkla India itself will not receive any proceeds from the offering. Instead, the funds raised will go directly to the selling shareholders. This approach is often used by promoters and early investors to monetize their holdings while increasing the company’s public float and market visibility.
Orkla India is a multi-category food company with a strong presence in the Indian market. It manufactures and sells a wide range of products, including spices, masalas, ready-to-eat sweets, and breakfast mixes. The company’s flagship brands include MTR, Rasoi Magic, and Eastern, which are household names in India’s packaged food segment.
The company’s diverse product portfolio and established brand equity have enabled it to maintain a robust market position. Orkla India’s operations are supported by a network of manufacturing facilities and a widespread distribution system, allowing it to reach millions of consumers across the country.
The Indian packaged food market is experiencing rapid growth, driven by changing consumer preferences, urbanization, and rising disposable incomes. According to a Technopak report cited in the DRHP, the market was valued at ₹10.18 lakh crore in FY24, with a compound annual growth rate (CAGR) of 10.8% since FY19. This growth trajectory underscores the significant opportunities for established players like Orkla India to expand their market share and introduce new products.
The IPO will be managed by a consortium of leading investment banks, including ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company. These firms will act as book-running lead managers, responsible for marketing the issue, managing investor relations, and ensuring regulatory compliance throughout the IPO process.
The proposed IPO is expected to enhance Orkla India’s public profile and provide greater liquidity for its shares. For existing shareholders, particularly the promoters and early investors, the OFS presents an opportunity to unlock value from their investments. For public investors, the listing will provide access to a well-established company operating in a high-growth sector.
The move also reflects a broader trend of multinational and domestic food companies tapping into India’s capital markets to fuel growth and innovation. As the packaged food sector continues to expand, more companies are expected to explore public listings to capitalize on investor appetite for consumer-focused businesses.
