Orkla India Announces ₹1,667 Crore IPO: MTR Foods Parent Sets Price Band at ₹695-730
Orkla India Ltd., parent company of MTR Foods, is launching an Initial Public Offering (IPO) worth ₹1,667 crore. The IPO, structured as an Offer For Sale (OFS), has a price band of ₹695-₹730 per share with a minimum bid of 20 shares. The subscription period is from October 29 to October 31. The offer allocation is 50% for institutional investors, 35% for retail investors, and 15% for non-institutional investors. Major selling shareholders include Orkla Asia Pacific (Promoter) offering 2.05 crore shares. At the upper price band, the company is valued at a P/E ratio of 39 times based on diluted EPS. Eligible employees will receive a ₹69 per share discount.
*this image is generated using AI for illustrative purposes only.
Orkla India Ltd., the parent company of the well-known MTR Foods, has unveiled the details of its upcoming Initial Public Offering (IPO). The company is set to enter the Indian stock market with a substantial ₹1,667 crore public offering, marking a significant moment for investors and market watchers alike.
IPO Details
| Particular | Details |
|---|---|
| Price Band | ₹695 - ₹730 per share |
| Subscription Period | October 29 - October 31 |
| Minimum Bid | 20 shares |
| Minimum Investment | ₹13,900 |
Offer Structure
The entire issue is structured as an Offer For Sale (OFS), which means that the company itself will not receive any proceeds from the IPO. The offer is divided among different categories of investors:
| Investor Category | Allocation |
|---|---|
| Institutional Investors | 50% |
| Retail Investors | 35% |
| Non-Institutional Investors | 15% |
Key Selling Shareholders
The IPO will see significant participation from the following shareholders:
| Shareholder | Shares Offered |
|---|---|
| Orkla Asia Pacific (Promoter) | 2.05 crore shares |
| Avas Meeraan | 11.41 lakh shares |
| Meera Avas | 11.41 lakh shares |
Valuation and Employee Benefits
At the upper price band, Orkla India is poised to trade at a price-to-earnings ratio of 39 times based on diluted EPS. This valuation suggests a premium positioning in the market, reflecting investor confidence in the company's growth prospects and market position.
Eligible employees will receive a discount of ₹69 per share on the offer price. This employee-friendly approach can be seen as a strategy to align employee interests with the company's future performance in the stock market.
Market Implications
The Orkla India IPO is likely to draw significant attention from various quarters of the market. As the parent company of MTR Foods, a brand with strong recognition in the Indian market, this IPO could be seen as a proxy for investing in India's growing packaged food industry.
The substantial size of the IPO, at ₹1,667 crore, indicates the company's confidence in market conditions and investor appetite. However, as with all IPOs, potential investors should carefully consider the company's financials, growth prospects, and the overall market conditions before making an investment decision.
It's worth noting that while the IPO presents an opportunity for public participation in the company's ownership, the OFS structure means that the proceeds will go to the selling shareholders rather than funding the company's future growth initiatives.
As the subscription period approaches, market analysts and investors will be keenly watching the response to this significant offering in the Indian capital markets.
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