In yet another sign of growing multinational confidence in India’s capital markets, Orkla India Limited, the Indian arm of the Norwegian industrial powerhouse Orkla ASA, is gearing up for its much-anticipated initial public offering (IPO). The parent company of household brands like MTR Foods, Eastern Condiments, and Rasoi Magic has wrapped up its investor roadshows and is set to hit the markets in the coming weeks.
Credits: Moneycontrol
A Nordic Giant Tapping India’s IPO Wave
Orkla India’s listing comes amid a surge of multinational corporations unlocking value through Indian stock exchanges. Just weeks ago, LG Electronics India’s ₹11,607-crore IPO became the first in the country to cross the ₹4 lakh crore mark in total subscriptions, setting off a wave of optimism among global players.
According to people familiar with the matter, Orkla India is targeting a valuation between $1.10 billion (₹9,800 crore) and $1.18 billion (₹10,500 crore) for its market debut. The company is expected to file its updated draft red herring prospectus (UDRHP) shortly, with plans to launch the issue by late October or early November, depending on market conditions.
While Orkla India did not respond to queries, insiders confirmed that the IPO will be a pure offer for sale (OFS), meaning all proceeds will go to the existing shareholders rather than the company itself.
The Offer for Sale: Who’s Selling?
As per the draft papers filed earlier, Orkla India’s IPO will involve the sale of 2.28 crore equity shares by its existing shareholders. The selling parties include Orkla Asia Pacific Pte, which is the main promoter, and minority shareholders Navas Meeran and Feroz Meeran, who each hold 5% stakes.
Collectively, Orkla ASA and Orkla Asia Pacific Pte Ltd own 90% of the company, while the Meeran brothers hold the remaining 10%. Post-listing, Orkla ASA’s stake will reduce, allowing Indian investors a chance to own a piece of one of the country’s most trusted packaged food portfolios.
The issue will be managed by a top-tier lineup of bankers, including ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, and JP Morgan India.
From MTR to Orkla India: A Journey of Consolidation
Orkla entered India in 2007 with the acquisition of MTR Foods, a household name synonymous with traditional Indian food mixes. In 2012, it strengthened its foothold by acquiring Kerala-based Eastern Condiments, known for its extensive spice range.
In 2023, the Norwegian group consolidated its Indian operations—MTR, Eastern, and its international business—under a single umbrella: Orkla India Limited. This strategic restructuring positioned the company as a unified multi-category food leader offering everything from spices and masalas to ready-to-eat sweets, breakfast mixes, and meal kits.
According to a Technopak report, India’s packaged food market was worth ₹10.18 lakh crore in FY24, growing at a 10.8% CAGR since FY19. Orkla India’s extensive product range and strong brand equity make it well-positioned to tap into this high-growth segment.
A Dual Track Past and a Focused Future
Interestingly, in early 2024, there were reports that ITC had explored acquiring Orkla India for around $1.4 billion, but the talks did not materialize. Orkla has since reaffirmed its commitment to the IPO route.
The parent’s 2024–2026 strategy emphasizes expanding its leadership in core categories like spices and spice blends, while introducing innovations in breakfast, sweets, and ready-to-eat meals. The company also plans to pursue value-creating investments with a disciplined approach to capital expenditure and M&A.
The Hyundai Effect: MNCs Eye India’s Public Markets
Orkla India’s IPO follows the “Hyundai effect”—a wave triggered by the massive success of Hyundai Motor India’s $3.3-billion IPO in October 2024. The listing, India’s largest ever, drew record investor interest and led to a 47% surge in Hyundai India’s stock price within six months.
This success story has inspired other global majors—Carlsberg, Versuni (formerly Philips Domestic Appliances), and Tenneco India—to prepare for their own Indian listings. With the Sensex up nearly 10% over the past six months, global corporations see India as not just a growth market, but also an ideal venue for value creation.
Credits: The Economic Times
A Landmark Listing in the Making
As Orkla India readies its IPO, market watchers view it as more than just another listing—it’s a testament to India’s growing stature in the global investment landscape. Backed by trusted brands, deep consumer loyalty, and strong parentage, the company’s debut could mark a defining moment for both India’s food industry and the next wave of MNC listings in the country.
