Orkla ASA Considers $400 Million IPO for Indian Business in 2025
Norway's Orkla ASA might consider tapping the primary market for funds in 2025, with reports suggesting that the IPO of its Indian business could raise up to $400 million.
According to a 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.
While high valuations and growing interest in Chinese markets have led Foreign Institutional Investors to sell, Domestic Institutional Investors have remained active, with DII inflows into Indian markets reaching over $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.
Orkla ASA's shares have risen by more than 27.3% over the past year on Euronext Oslo, with year-to-date returns of 27.47%. The company's market capitalization is approximately $9.2 billion.
