MTR Foods IPO: Orkla India, which markets its products under our brands MTR and Eastern, filed its draft red herring prospectus with the market regulator Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).
The proposed IPO by Orkla India is entirely an offer for sale (OFS) of up to 2.28 crore shares by the promoter and other selling shareholders of the company. Orkla Asia Pacific Pte, Navas Meeran and Feroz Meeran are among the shareholders offloading stake via the OFS.
Given the OFS nature of the Orkla IPO, the entire proceeds will go to the selling shareholders, and the company will not receive anything.
Under the Orkla India IPO, 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for the retail bidders.
About Orkla India
Orkla, formerly known as MTR Foods, is a multi-category Indian food company, specialising in South Indian cuisine.
It offers various products for breakfast, lunch, snacks, dinner, beverages and desserts. The key product categories include spices and convenience Foods. Its products are marketed under its brands MTR and Eastern.
According to the Technopak Report, quoted in the DRHP, in Fiscal 2024, Orka India was one of the top four companies in terms of revenue from operations among select leading spices and convenience food peers.
The company held approximately 22.2% market share in the Indian branded spices exports segment in Fiscal 2024. Meanwhile, Eastern has maintained its position as India’s largest exporter of branded spices for 24 consecutive years.
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 IPO shares are proposed to be listed on the BSE and the National Stock Exchange (NSE).
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