Launching its first public offering is Orkla India Limited, the Indian affiliate of Norwegian corporation Orkla ASA and parent of popular brand MTR Foods, signalling a major thrust into Indian capital markets. Seeking to generate around ₹1,667 crore via the IPO, the corporation has fixed the public share-sale price Orkla India IPO range between ₹695 and ₹730 per equity share.
Valuation implied for Orkla India at the upper band is at approximately ₹10,000 crore, or US $1.14 billion. The offer is constructed completely as an Offer for Sale (OFS), which means existing shareholders, including the promoters, will sell shares, and the returns will not go into the corporate coffers. Allocations for participating investors are set over categories: up to 50% for qualified institutional buyers (QIBs), 35% for retail investors, 15% for noninstitutional investors (NIIs).
Per lot of 20 shares, a basic investment will be needed; higher multipliers will apply to subsequent applications. Orkla India IPO has streamlined operations of top brands in the spice, ready-to-eat (RTE), and breakfast categories by purchasing and combining companies on the business side, like Eastern Condiments next to MTR Foods. To be succinct, the business is presented as a multi-category food company with activity in a sector that Technopak Advisors , a research firm, valued at more than ₹10 lakh. At a near 11% compound yearly rate (CAGR), it is a crore in size.
Orkla’s stated plan is to leverage the jump in India’s exports in the next four months and calls for the India arm to consolidate its influence in key categories, including spices and spice blends, while also increasing investment in nearby areas like breakfast, sweets, meal kits, and ready-to-cook products. By introducing itself to the market now, the company hopes to profit from its great brand legacy and growth prospects by means of the favourable investor interest in India’s organized consumer goods sector. Investors in public markets will get an opportunity to engage in the next stage of development of this entity if it is listed.