MUMBAI: Orkla India, the parent of packaged foods manufacturer MTR Foods and condiments leader Eastern, has set the price band for its Rs 1,667.54-crore primary share in the range of Rs 695-730 that opens on October 29.The floor price is 695 times the face value bearing the equity shares and the cap price is 730 times the face value.
The mainboard offering is entirely an offer for sale (OFS) of 22.8 million equity shares worth Rs 1,667.54 crore. Orkla Asia Pacific, which is in turn owned by the eponymous Norwegian parent, is the promoter selling shareholder owning 90 percent equity, while Navas Meeran and Feroz Meeran who are the original founder of Eastern Condiments are other selling shareholders.
The Meeran brothers collectively own 10 percent and will be diluting just 1.8 percent through the offer, Sanjay Sharma, the chief executive of Orkla India, told The New Indian Express here on Friday.
“The IPO is not meant to give the Meeran brothers an exist but to show the group's deeper commitment to this market, which with just two brands out of our 100 plus brand most of them acquired, give us 5 percent of group turnover and 8 percent of net profit, and increase our shareholder base here, as we seek to widen our reach in India,” Sharma added when asked about the trigger for the IPO through which the parent company will be diluting its stake to 75 percent.
Being an OFS, the company will not receive any proceeds from the offer, and the offer proceeds will be received by the selling shareholders. Competing with listed peer Tata Consumer Products, the company has delivered steady financial performance, with net profit rising 9.8 percent to Rs 78.9 crore in the June quarter from Rs 71.9 crore a year earlier. Revenue increased 6 percent to Rs 597 crore from Rs 563.5 crore during the same period.
In FY25, the company reported revenue from operations of Rs 2,394.7 crore, up 1.6 percent from Rs 2,356.01 crore in the previous fiscal and from which it had earned Rs 255.69 crore, up 13 percent from Rs 226.33 crore in FY24.
Incorporated in 1996, Orkla India is a multi-category food company offering a diverse range of products that cater to every meal occasion, including breakfast, lunch, snacks, dinner, beverages and desserts. Its key product categories are spices and convenience foods. Orkla has a collection of iconic heritage brands, including MTR Foods, Eastern Condiments, and Rasoi Magic.
The company has significant presence in Karnataka, Kerala, Andhra and Telangana. It also exports products to about 42 countries, such as the GCC countries, the US, and Canada. As of March 2025, it operated nine manufacturing facilities with a total installed capacity of 182,270 tonnes per annum.
Shamra said, when it comes to export revenue, as much 70% of the income from the condiments/spices business come in forex. Currently, promoters Orkla Asia Pacific and the Norwegian industrial investment entity Orkla ASA collectively own a 90 percent stake, while the Meeran brothers each hold a 5 percent stake in the firm.
As per the Technopak report, the market for packaged food was Rs 1,01,80,00 crore in fiscal 2024, showing a compound annual growth rate of 10.8 percent from fiscal 2019.
Orkla India, which markets spices and convenience foods such as ready-to-cook and ready-to-eat products, has a portfolio of around 400 items and a strong presence in Karnataka, Kerala, Andhra, and Telangana.
