Orkla India IPO: Rs 500 Cr from Anchor Investors

New Delhi, Oct 28 (PTI) Orkla India, which owns spices and condiments brands MTR and Eastern, on Tuesday said it has raised around Rs 500 crore from anchor investors, a day before its maiden public opening for subscription.

The allotment saw participation from a strong mix of leading domestic and global institutional investors.

The prominent investors included 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, Jupiter India Fund, and Pinebridge India Equity Fund, according to a circular uploaded on the BSE website.

As per the circular, Orkla India allotted a total of 68,43,900 equity shares to anchor investors at a price of Rs 730 per piece, raising Rs 499.6 crore through the anchor book.

The company's Rs 1,667 crore initial public offering (IPO) will open for public subscription on October 29 and conclude on October 31.

It has fixed a price band of Rs 695 to Rs 730 per share, aiming for a valuation of around Rs 10,000 crore at the upper end.


The company's IPO is a complete offer for sale (OFS) of 2.28 crore equity shares by promoter and other shareholders, with no fresh issue component.

Under the OFS, promoter Orkla Asia Pacific Pte and shareholders -- Navas Meeran and Feroz Meeran are offloading shares.

At present promoters -- Orkla Asia Pacific Pte. Ltd and Norwegian industrial investment company Orkla ASA -- hold 90 per cent stake, while Navas Meeran and Feroz Meeran own 5 per cent stake each in the company.

Since it is an OFS, the company will not receive any proceeds from the IPO and the entire money will go to the selling shareholders.

Orkla India, formerly known as MTR Foods, is a multi-category Indian food company. It manufactures products as spices and masalas, ready-to-eat, sweets and breakfast mixes, under prominent brands such as MTR, Rasoi Magic, and Eastern.

The company sells its products under the brands MTR and Eastern.

Orkla India will make its debut on the stock exchanges on November 6.