Orkla India raises Rs 500 crore from anchor investors ahead of IPO; Nomura, Societe Generale among buyers

Orkla India, the parent company of MTR Foods maker, has raised Rs 500 crore from major anchor investors ahead of its IPO. The shares were issued to domestic and foreign investors at Rs 730, the highest price band of the public offer. The issue opens on Wednesday and closes on Friday.

Prominent investors who have subscribed to the anchor book include Nippon India Mutual Fund, Aditya Birla Sun Life Mutual Fund, LIC Mutual Fund, Baroda BNP Paribas Mutual Fund, Nomura Funds Ireland, Government Pension Fund Global and Jupiter India Fun.

The IPO is a pure offer for sale of 2.28 crore shares, amounting to Rs 1,667.54 crore. No new money will be raised, meaning the proceeds will go to the selling shareholders, mainly the promoter entities – Orkla ASA, Orkla Asia Holdings AS and Orkla Asia Pacific Pte Ltd.

The company has set a price range of Rs 695-730 per share, with a minimum lot size of 20 shares, which translates to a minimum investment of Rs 14,600 for retail investors.

Orkla India owns several household brands such as MTR Foods, Eastern Condiments and Rasoi Magic, making it a formidable player in the Indian packaged food market. The range includes breakfast mixes, herbs, ready-made meals and drinks.

The company operates nine manufacturing units across India and also uses contract facilities in the UAE, Thailand and Malaysia. It sells over 2.3 million units daily across 28 states and 6 union territories and exports to 42 countries. Orkla India is the market leader in South India and is expanding nationally. Its distribution network includes 834 distributors and 1,888 sub-distributors, giving it deep regional penetration and strong control over supply chains. For FY25, the company reported revenues of Rs 2,455 crore, up 3% YoY, and profit after tax of Rs 256 crore, up 13% YoY. EBITDA stood at Rs 396 crore, implying healthy margins of 16.6%, while PAT margin stood at 10.7%.

At the higher end of the price range, the IPO values ​​the company at a post-issue price-to-earnings ratio of 31.7x and a market capitalization of around Rs 10,000 crore. This is largely in line with other FMCG peers such as Marico and Tata Consumer, albeit at a slight discount to premium names such as Nestle India and Hindustan Unilever.