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Orkla India, the owner of food brands MTR and Eastern, on Tuesday submitted preliminary documents to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

According to the draft red herring prospectus (DRHP) filed, the public issue will be a complete offer for sale (OFS) of 2.28 crore equity shares. The shares will be sold by the promoter, Orkla Asia Pacific Pte Ltd and shareholders Navas Meeran and Feroz Meeran.

Currently, Orkla Asia Pacific Pte Ltd and its parent company, Norwegian industrial group Orkla ASA, hold a combined 90 per cent stake in Orkla India. The remaining 10 per cent is equally owned by Navas Meeran and Feroz Meeran.

As the IPO is an OFS, the company will not receive any funds from the issue it means all proceeds will go to the selling shareholders.

Orkla India, formerly known as MTR Foods, is a diversified Indian food company. It produces a range of packaged food items including spices, ready-to-eat meals, and breakfast mixes under the brands MTR, Rasoi Magic, and Eastern.

A report by Technopak estimates the Indian packaged food market to be worth Rs 10.18 lakh crore in FY24, growing at a compound annual rate of 10.8 per cent since FY19.

ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company are acting as the lead managers for the IPO.

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