Orkla India IPO: MTR & Eastern owner files draft papers with Sebi

Orkla India, known for its popular brands MTR and Eastern, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). This IPO is structured as a complete offer for sale (OFS) of 2.28 crore equity shares, as per the draft red herring prospectus (DRHP).

The shares to be sold in the proposed initial share sale are held by the promoter Orkla Asia Pacific Pte, along with shareholders Navas Meeran and Feroz Meeran.

The current shareholding sees Orkla Asia Pacific Pte Ltd and Orkla ASA owning a combined 90 per cent stake in the company, while the remaining 10 per cent is split equally between Navas Meeran and Feroz Meeran.

Since the IPO is an OFS, the company itself will not retain any proceeds from the sale; instead, the revenues will be directed to the selling shareholders.

Orkla India, previously known as MTR Foods, is based in Bengaluru and operates as a multi-category food company. It specialises in manufacturing a variety of products including spices, masalas, ready-to-eat sweets, and breakfast mixes under well-known brands such as MTR, Rasoi Magic and Eastern.

The company's primary focus remains on spices and convenience foods, which have been core to its identity and market offerings.

Earlier this year, in March, Orkla India undertook a board restructuring initiative by appointing four independent directors. By enhancing its board with independent oversight, Orkla India aims to strengthen its governance framework, potentially increasing investor confidence ahead of the IPO.

With its strong product lineup and established brand presence, Orkla India is poised to attract attention from investors keen on exploring opportunities in the Indian food sector.

ICICI Securities, Citigroup Global Markets India, JP Morgan India and Kotak Mahindra Capital Company are the book-running lead managers to the issue.