Bengaluru-based Orkla India, the parent of MTR Foods and Eastern Spices, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The offering will see the sale of 2.28 crore equity shares by promoter Orkla Asia Pacific Pte and shareholders Navas Meeran and Feroz Meeran, at a face value of Rs 1 each. The company had filed its draft red herring prospectus (DRHP) in June.
With a portfolio of over 400 products, Orkla India operates across two key categories — spices, which contribute 66.6% of revenue, and convenience foods, including ready-to-cook and ready-to-eat products, accounting for 33.4%.
According to Technopak Advisors, India’s packaged foods market was valued at Rs 10.18 lakh crore in FY24, growing at a CAGR of 10.8% since FY19, driven by rising incomes, urbanisation, and shifting consumer lifestyles. Unlike seasonal categories, packaged food demand is steady year-round, the DRHP noted.
Orkla India is also eyeing global expansion, targeting high-potential markets such as Australia, New Zealand, Singapore, Malaysia, and the UK — collectively home to 6.7 million overseas Indians as of December 2024.
For FY25, the company reported revenue of Rs 2,395 crore with a CAGR of 9.2% between FY22 and FY25, and a profit after tax of Rs 255.7 crore.
The book-running lead managers to the issue are ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company.
