Spices and condiments-making brand, Orkla India, is set to open its ₹1,667-crore Initial Public Offering (IPO) for public subscription on October 29, at a fixed price band of ₹695-730 per share.
The company, formerly known as MTR Foods, sells its products under the brands, MTR and Eastern. It is aiming for a valuation of around ₹10,000 crore at the upper end, the company said.
Its IPO public subscription will conclude on October 31, according to a public announcement. Anchor investors can submit their bids on October 28.
The company’s IPO is a complete Offer for Sale (OFS) of 2.28 crore equity shares by promoter and other shareholders, with no fresh issue component.
Under the OFS, promoter Orkla Asia Pacific Pte and shareholders – Navas Meeran and Feroz Meeran – are offloading shares. But, since it is an OFS, the company will not receive any proceeds from the IPO and the entire money will go to the selling shareholders.
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At present promoters – Orkla Asia Pacific Pte. Ltd and Norwegian industrial investment company Orkla ASA – hold 90 per cent stake, while Navas Meeran and Feroz Meeran own 5 per cent stake each in the company.
Orkla India manufactures products as spices and masalas, ready-to-eat, sweets and breakfast mixes, under prominent brands such as MTR, Rasoi Magic and Eastern.
Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company are the book-running lead managers to the issue.
Orkla India will also make its debut on the stock exchanges on November 6.
According to the Technopak report, the Indian packaged food market was estimated at ₹10,180 billion in Fiscal 2024, reflecting a CAGR of 10.8 per cent compared to Fiscal 2019.
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