Orkla India Gears Up for Rs 5,000 Crore IPO Through Share Sale
Orkla India, owner of MTR and Eastern spice brands, is set for a Rs 5,000 crore IPO in mid-November. The company will offer up to 2.28 crore shares through an offer-for-sale (OFS) of existing shares. Orkla received SEBI approval in September after filing its draft prospectus in June. The IPO proceeds will go to selling shareholders, as it's purely an OFS. Orkla India, a major player in the Indian food industry, manufactures spices, ready-to-eat sweets, and breakfast mixes under brands like MTR, Rasoi Magic, and Eastern.
*this image is generated using AI for illustrative purposes only.
Orkla India, the company behind popular spice brands MTR and Eastern, is preparing for its market debut with a substantial Initial Public Offering (IPO) planned for mid-November. The company aims to raise approximately Rs 5,000 crore through an offer-for-sale (OFS) of existing shares.
IPO Details
- Offering Size: Up to 2.28 crore shares
- Target Amount: Rs 5,000 crore
- Offering Type: Offer-for-Sale (OFS)
- Expected Timeline: Mid-November
- Regulatory Status: SEBI approval received in September
Current Ownership Structure
| Shareholder | Stake |
|---|---|
| Orkla Asia Pacific Pte and Orkla ASA | 90.00 |
| Navas Meeran | 5.00 |
| Feroz Meeran | 5.00 |
Key Points
- Orkla India plans to file its red herring prospectus soon.
- The IPO will be purely an offer-for-sale, meaning the company will not receive any proceeds from the share sale.
- All funds raised will go to the selling shareholders.
- The company received SEBI approval in September after filing its draft prospectus in June.
Company Profile
Orkla India is a prominent player in the Indian food industry, known for manufacturing:
- Spices
- Ready-to-eat sweets
- Breakfast mixes
The company's portfolio includes well-known brands such as MTR, Rasoi Magic, and Eastern.
Market Implications
This IPO represents a significant move in the Indian food industry, potentially offering investors exposure to an established player in the packaged food and spices segment. The substantial size of the offering, at Rs 5,000 crore, suggests strong interest from the selling shareholders in monetizing their investment.
Investors and market watchers may keep a close eye on the pricing and demand for this IPO, as it could provide insights into market appetite for consumer goods companies, particularly those with strong brand recognition in the Indian market.
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