Orkla India, The Parent Company of Food Brands Like MTR Foods and Eastern Condiments, Has Filed Its Draft Red Herring Prospectus (DRHP) With the Securities and Exchange Board of India (Sebi) for An Initial Public Offering (IPO) 22.8 Million Shares by The Promoter Entity, Orkla Asia Pacific PTE and Other Shareholders, Navas Meeran and Feroz Meeran.
This means that IPO will not get any new capital for Orkl India and all revenues from the sale of shares will only go to the seller seller. While the company officially did not publish the size of the problem, the person with direct knowledge of this matter said it could be to the extent £3 200-3 500 crore. Orkla India refused to comment on the estimated size of the problem.
Orkla Asia Pacific PTE LTD and Norwegian industrial investment company Orkla ASA – collectively hold 90% stake in the company. Navas Meeran and Feroz Meeran hold every 5% share. Orkla ASA entered India by acquiring MTR food manufacturer ready to eat and in 2020 the eastern spicemaker spice.
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There was a significant consolidation in the grocery market because large players gain brands to expand their portfolio and increase the presence.
Patanjali Ayurved received bankruptcy of Ruchi Soya Industries in FY20, ITC bought Sunrise Foods in FY21, Orkla India gained eastern spices in FY21, Tata consumer products bought capital food and organic India at FY24 and Wipro Consumer Care.
Orkla named ICICI Securities, Citigroup Global Markets India, JP Morgan India and Kotak Mahindra Capital Company to help manage the sale of shares. ORKLA ASA shares on Wednesday dropped by 2.87% to 111.6 Norwegian Krone (NOK).
Orkla India’s decision to start IPO, only through an offer for sale, means a wider trend between MNC in India. This step allows MNC to monetize its investment and earn on robust awards at present on the Indian market, reflecting a strategic shift to unlock the value of shareholders.
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Recently, the long -term investor of the British American tobacco (BAT) has sold a partial share in ITC, while South Korean parent Hyundai interpreted some share in the Indian unit last year.
Last year, Conagra Brands announced the sale of its control share in Agro Tech Foods, India, while Japanese Sumitomo systems sold a 4.4% stake in Samvardhan Motherson International. Other transactions include the Whirlpool’s share in its Indian arm and Fairfax’s Group Entity Fairbridge Capital (Mauritius) LTD selling about 8.5% of Thomas Cook India.
In February Mint announced solely that ITC LTD was discussed in time to get its Indian businesses – MTR and Eastern spices – for about $ 1.4 billion, referring to people who meet this matter. Although it did not disappoint IPO plans, the company also examined the possibilities on private markets.
Orkla India, which was previously known as MTR Foods, offers a range of products including spices, Masas, sweets ready to eat and mix with breakfast under brands such as MTR, Rasoi Magic and Eastern. MTR Foods and Eastern lead the market for food and spices ready for cooking in Andhra Pradesh, Karnataka, Tamil Nadu and Keral.
MTR Foods also sells several products in North America, West Asia, Japan and some Southeast Asia countries. The South Indian range of MTR products is a key category in many international markets.
According to the Technopak report, the Indian food market was estimated at £10,18 lakh crore in FY24, growing at Cagr 10.8% from FY19.
After the launch of MTR in the food space in 1950, MTR Foods has been diversified by MTR Foods before becoming the best player in the hill and ready for cooking in South India. MTR and Eastern are two main companies under the India Orkla.
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In FY25, the company announced £2 455 crore in total income, higher than £2 387 Crore a year earlier, according to the proposal of the prospectus of Red Herring. Published it £255 crore, from £226 crore in FY24.
MTR Foods and Eastern spices won three quarters of sales from the southern states in 2024. However, the competition in spice and space prepared for cooking increases with multiple brands and unorganized players.
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