MTR-Foods’ parent Orkla ASA plan to list its Indian business via $400 million IPO; check details

Norway-based Orkla ASA Indian business might tap the primary market for funds in 2025. According to a media report, the Norwegian company's initial public offering (IPO) of its Indian business is likely to be worth $400 million.

According to an Economic Times report, the Norwegian firm, which owns MTR Foods in India, is expected to file its draft papers for IPO in the fourth quarter of FY25. As of now, the company is consulting advisers on the potential share sale. According to the source, the company could seek a valuation of more than $2 billion for its Indian business.

The deliberations are underway, and the IPO details, such as the issue size and dates, may change. The report also cited an Orkla spokesman who said that the company is considering the possibility of accessing the Indian capital market. The company said it is assessing options and expects a conclusion on the matter to come during 2025.

The Norwegian company owns MTR Foods in India, a prominent manufacturer of ready-to-eat meals and spices. Since 2021, the company has also owned a controlling stake in Eastern Condiments.

Earlier this year, reports claimed that Orkla was exploring a public listing after completing a restructuring.

Even as high valuations and emerging interest in the Chinese markets have turned Foreign Institutional Investors into sellers, Domestic Institutional Investors have continued to invest in the markets. DII Inflows into the Indian markets surged to more than $70 billion in the first 10 months of the year.

Many foreign firms have listed their Indian subsidiaries to benefit from India’s booming primary market and its valuations. Earlier this year, South Korean automotive giant Hyundai Motor Co.’s Indian business launched its public issue in India. The company raised ₹27,870.16 crore through an offer for sale of 14.22 crore shares. LG Electronics Inc. is also planning to list its India business, according to reports.

Shares of Orkla ASA have gained over 27.3% in a year on Euronext Oslo and have given year-to-date returns of 27.47%. The company has a market capitalisation of nearly $9.2 billion.