What's Happening?
Orkla's Indian unit is set to launch its initial public offering (IPO) next week, having received regulatory approval to list its equity shares on domestic exchanges. The IPO, scheduled for October 29-31, will see Orkla Asia Pacific and other shareholders
offering up to 22.8 million shares. The price band for the IPO is set between Rs695 and Rs730 per share. Orkla India, operating under the MTR and Eastern brands, focuses on spices and convenience foods, with spices accounting for a significant portion of its revenue. The company will not receive any proceeds from the sale, as outlined in the red herring prospectus.
Why It's Important?
The IPO of Orkla's Indian unit highlights the growing significance of the spices and convenience foods market in India. With spices contributing a major share of the company's revenue, the IPO could attract investors interested in the robust growth potential of this sector. The listing also reflects Orkla's strategic focus on expanding its footprint in the Indian market, leveraging the strong brand presence of MTR and Eastern. For investors, the IPO offers an opportunity to invest in a company with a well-established market position and a diverse product portfolio.
What's Next?
Following the IPO, Orkla India's shares are expected to begin trading around November 6, subject to final approvals. The market will closely watch the performance of the shares, which could influence future investment decisions in the Indian food sector. Additionally, the success of the IPO may encourage other companies in the spices and convenience foods industry to consider public listings as a means to raise capital and expand their operations.
