Orkla India Eyes $1 Billion IPO Valuation; Launch Likely by November

Orkla India Limited, the Indian arm of Norwegian industrial group Orkla ASA and the parent company of MTR Foods, Eastern Condiments, and Rasoi Magic, is gearing up for its much-awaited initial public offering (IPO), which could value the company at over $1 billion (₹9,800–₹10,500 crore). The IPO is expected to hit the market by late October or November, depending on market conditions.

Investor roadshows conclude ahead of listing

According to industry sources, Orkla India has completed investor roadshows and is preparing to make its market debut soon. The IPO will be a pure offer for sale (OFS), meaning the proceeds will go entirely to the selling shareholders and not the company itself.

The firm’s updated draft red herring prospectus (UDRHP) will be filed shortly. The move comes amid growing interest from multinational corporations to unlock value in Indian capital markets, following the success of large MNC listings like LG Electronics India, whose IPO crossed ₹4 lakh crore in subscription.

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IPO details and deal structure

Orkla India received SEBI approval for its IPO on September 15, after filing its draft red herring prospectus (DRHP) in July. As per the filing, the IPO will include a complete OFS of 2.28 crore equity shares. Shares will be offloaded by Orkla Asia Pacific Pte Ltd, along with shareholders Navas Meeran and Feroz Meeran.

The promoters hold a 90% stake in the company, while Navas and Feroz Meeran hold 5% each. The issue will be managed by ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, and JPMorgan India.

Since this is a pure OFS, no fresh equity will be issued, and the company will not directly benefit financially from the IPO proceeds.

From MTR to Orkla India: A strong brand portfolio

Orkla’s journey in India began in 2007 with the acquisition of MTR Foods, followed by the purchase of Eastern Condiments in 2012. In 2023, the company merged its multiple Indian businesses — MTR, Eastern, and its international unit — into one consolidated entity, Orkla India.

The company today operates across multiple food categories, offering spices, masalas, breakfast mixes, and ready-to-eat meals, making it a household name across India.

Growth outlook and market opportunity

India’s packaged food market is estimated at ₹10.18 lakh crore as of FY24, growing at a CAGR of 10.8% since FY19. With strong domestic demand and established brands, Orkla India is expected to attract significant investor interest.

In its 2024–2026 strategy, Orkla ASA said the focus for its Indian arm will be to strengthen leadership in core categories such as spices and spice blends, while expanding in breakfast, sweets, and ready-to-cook segments. The company also plans to explore selective M&A opportunities while maintaining disciplined capital expenditure.

Global context and MNC listing trend

Orkla’s decision follows a broader trend of multinational companies tapping into India’s booming equity markets. The successful Hyundai Motor India IPO, which raised $3.3 billion in 2024 and achieved a $19 billion valuation, has set a strong precedent.

Other global players — including Carlsberg, Tenneco India, and Versuni (formerly Philips Domestic Appliances) — are reportedly exploring IPOs for their Indian arms as investor appetite for MNC-backed companies grows.

The Sensex’s 10% rise in the past six months and strong retail participation have further bolstered market sentiment.

A potential milestone for Orkla’s India journey

The proposed Orkla India IPO underscores the group’s long-term commitment to the Indian market. The listing will allow investors to participate in one of India’s most trusted FMCG brands, while helping Orkla unlock shareholder value.

With a $10.2 billion global market cap, Orkla ASA already operates in over 20 countries, spanning consumer goods, aluminium products, and financial investments.

If market conditions remain favourable, Orkla India’s IPO could be one of the most anticipated MNC listings of 2025, reflecting the strong investor confidence in India’s growing packaged food and FMCG space.

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