Orkla India gets Sebi nod for IPO; parent of MTR Foods, Eastern Spices

Orkla India, the parent of MTR Foods and Eastern Spices, has received SEBI approval for its IPO involving the sale of 2.28 crore equity shares by promoter and shareholders

Orkla India, the parent of MTR Foods and Eastern Spices, on Monday received an approval from the Securities and Exchanges Board of India (SEBI) for its initial public offering.

 

The IPO will involve the sale of 2.28 crore equity shares by promoter Orkla Asia Pacific Pte, along with shareholders Navas Meeran and Feroz Meeran, at a face value of Rs 1 each. The company had filed its draft red herring prospectus (DRHP) in June.

 

Orkla India’s product portfolio comprises more than 400 products across two key categories — spices and convenience foods, the latter including ready-to-cook and ready-to-eat offerings.

 

According to a report by Technopak Advisors, the Indian packaged foods market was valued at Rs 10.18 lakh crore in financial year 2024 (FY24), growing at a compound annual growth rate (CAGR) of 10.8 per cent from FY19.

 

“The high growth is driven by rising disposable incomes, urbanisation, lifestyle changes, nuclearisation, and a growing workforce, particularly among women. The packaged food market remains stable throughout the year, as demand is primarily driven by regular consumption rather than seasonal fluctuations,” the DRHP said. 

 

The Bengaluru-based company plans to expand its operations globally, especially in markets such as Australia, New Zealand, Singapore, and Malaysia, according to the DRHP.

 

The Technopak report noted that these countries, along with the United Kingdom, are emerging as high-potential export markets for Indian spices, collectively hosting around 6.7 million overseas Indians as of December 31, 2024.

 

Orkla India reported revenue of Rs 2,395 crore in FY25, with a CAGR of 9.2 per cent between 2022 and 2025. Profit after tax stood at Rs 255.7 crore. Spices contributed 66.6 per cent of revenue, while convenience foods accounted for 33.4 per cent.

 

The book-running lead managers to the issue are ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company.