Orkla India Ltd, the homegrown FMCG arm of Norwegian conglomerate Orkla ASA, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to go public. Known for beloved brands like MTR Foods, Eastern Condiments, and Rasoi Magic, the company’s IPO will be a pure Offer for Sale (OFS) of 2.28 crore equity shares, with no fresh issue component.
The OFS will primarily involve the company’s majority shareholder, Orkla Asia Pacific Pte Ltd, which plans to divest around 2.01 crore shares. Promoters Navas Meeran and Feroz Meeran will also each sell approximately 11.4 lakh shares, enabling partial exit while retaining strategic interest.
The IPO comes as Orkla India looks to unlock value from its decade-plus operations in India. Orkla first entered the Indian market in 2007 by acquiring MTR Foods, and later strengthened its presence by acquiring a 67.8% stake in Eastern Condiments in 2020. These entities were later merged to form Orkla India, now a leading packaged foods company with a stronghold in South India and growing international distribution.
In FY25, Orkla India reported revenues of ₹2,395 crore and a net profit of ₹256 crore, improving from ₹2,356 crore and ₹226 crore in the previous fiscal. Over the past three years, the company has delivered a 30% CAGR in profits, along with steady gains in EBITDA and revenue. Operating metrics remain robust, with EBITDA margins over 11%, a Return on Capital Employed (ROCE) of 32.7%, and a lean working capital cycle of 21 days.
The company earns over 20% of its revenues from exports, with its brands reaching markets in North America, West Asia, Southeast Asia, and Japan, riding on the popularity of traditional Indian food products like ready mixes, spices, and breakfast items.
The IPO will be managed by ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, and J.P. Morgan India as the lead book-running managers. The public issue is expected to value the company in the range of ₹9,000–11,000 crore ($1.1–1.4 billion), based on industry benchmarks and revenue multiples typical for the packaged foods sector.
In a bid to bolster governance ahead of the listing, Orkla India recently appointed four independent directors to its board, aligning itself with best practices for public companies.
By taking the public route, Orkla India is set to become a significant player in India’s listed FMCG space. With strong financials, a legacy of trusted food brands, and an expanding global footprint, the company is well-positioned to capitalize on India’s growing demand for branded, ready-to-use food solutions.