According to sources who spoke to Moneycontrol, the IPO’s post-money value has landed at the upper end of the pricing range at around Rs 10,000 crore ($1.13 billion).
According to several industry insiders who spoke to Moneycontrol, Orkla India Limited, the Indian division of the Norwegian industrial investment conglomerate and the parent company of well-known domestic brands Rasoi Magic, Eastern Condiments, and MTR Foods, is preparing to launch its initial public offering (IPO) between October 29 and October 31.
According to one of the individuals mentioned above, “the red herring prospectus will be submitted soon and the aim is for the offer to be opened for public subscription between October 29 and 31 with the anchor book set for October 28.”
A second individual verified the same dates
Two additional people claim that the IPO’s ultimate post-money value landed at the upper end of the price range, at around Rs 10,000 crore ($1.13 billion).
According to one of them, promoter Orkla Asia Pacific Pte and shareholders Navas Meeran and Feroz Meeran will participate in the initial public offering (IPO), which is a complete offer for sale (OFS) of 2.28 crore equity shares. This will result in a total dilution of approximately 16.6% of the shares, which implies an issue size of approximately Rs 1,660 crore.
All four of the individuals mentioned above agreed to speak anonymously to Moneycontrol.
Moneycontrol contacted Orkla ASA and Orkla India with questions, but they were unable to respond right away. As soon as we get information from the businesses, we will update this page.
The first to indicate that Orkla India was aiming for an IPO value between $1.10 billion (Rs 9,800 crore) and $1.18 billion (Rs 10,500 crore) was Moneycontrol on October 10. Depending on market circumstances, the deal launch is expected to take place by the end of October or early November.
Another indication that a multinational corporation is trying to find value in the local stock market is the planned listing.
It follows LG Electronics India, the South Korean giant’s subsidiary, being the first significant initial public offering (IPO) in India to reach the Rs 4 lakh crore subscription milestone (Rs 11,607 crore). The strongest trading debut for a billion-dollar initial public offering (IPO) in India occurred on October 14, when LG Electronics India surged by 48%.
In addition to Carlsberg India, Apollo Global-backed Tenneco India, and Hillhouse Investment-backed Versuni (previously Philips Domestic Appliances), other multinational corporations (MNCs) that have entered the market include Hyundai Motors India and Carraro India.
The IPO journey of Orkla India: Deal structure
Orkla India submitted its draft red herring prospectus (DRHP) earlier in July and gained the Sebi approval for the IPO on September 15.
Together, the promoters, Orkla Asia Pacific Pte Ltd and Orkla ASA, own 90% of the business. Each of Navas Meeran and Feroz Meeran owns 5% of the company.
Since the IPO is wholly an OFS, the selling shareholders will get all profits and the firm will not receive any.
According to the draft red herring prospectus, Shardul Amarchand Mangaldas serves as the company’s legal counsel, while ICICI Securities, Kotak Mahindra Capital, Citigroup Global Markets India, and JP Morgan India are the book-running lead managers for the offering.
More about Orkla: Entry into India
In 2007, Orkla made its debut in India by purchasing MTR Foods. Five years later, it bought Eastern Condiments, a spice manufacturer located in Kerala. The company then reorganized its activities in India in 2023, combining its three business divisions (MTR, Eastern, and foreign business) into a single organization called Orkla India.
Orkla India is a multi-category food firm that sells a variety of goods, such as breakfast mixes, ready-to-eat sweets, spices, and masalas.
A Technopak analysis estimates that the Indian packaged food industry grew at a compound annual growth rate (CAGR) of 10.8% from FY19 to reach Rs 10.18 lakh crore in FY24.
The parent company, Orkla, is involved in the financial investment, aluminum, and branded consumer goods industries. In Norway, Sweden, Denmark, Finland, Iceland, the Baltics, the rest of Europe, and beyond, the company operates consumer-focused companies under a number of brands.
Listed on the Oslo Stock Exchange, Orkla ASA has its headquarters in Oslo, Norway, and as of the conclusion of the trading day on October 22, its market capitalization was $10.6 billion.
In its most recent annual report, the parent company described the plan for the Indian arm for 2024–2026.
In addition to developing innovations to bolster Orkla India’s strong positions in the breakfast, confections, and ready-to-eat and ready-to-cook meal sectors, the company’s future emphasis will be on further solidifying its market positions within the core categories of spices and spice blends. According to the study, Orkla India will look for investment opportunities that add value while taking a methodical and targeted approach to capital expenditures as well as mergers and acquisitions.
Frequently Asked Questions
What was the genesis of Orkla?
The company’s mining beginnings are in Norway, near the Orkla River.
What is the relationship between Carlsberg and Orkla?
Orkla formerly owned up to 40% of Carlsberg Breweries, but subsequently sold the company.