Orkla Joins Foreign Firms Eyeing Lucrative Indian IPO Market

Norway's Orkla ASA is exploring an initial public offering (IPO) of its Indian business in Mumbai. 

The potential IPO could raise as much as $400 million, with a valuation exceeding $2 billion for the unit. The Oslo-based company is working with advisors and may file for the IPO as soon as next quarter. However, a final decision is expected in 2025.

An Orkla spokesman said the company is looking at the possibility of accessing the Indian capital market, adding that the results of the IPO preparations are encouraging. The company is assessing options and expects a conclusion on the matter to come during 2025, he told Bloomberg News.

Orkla's Presence in India

Orkla owns MTR Foods, a well-known Indian maker of ready meals and spices, and holds a controlling stake in Eastern Condiments, acquired in 2021. 

This IPO strategy aligns with a trend of foreign firms listing their Indian units to capitalize on the country's favourable valuations. Notably, Hyundai Motor Co.'s Indian business recently raised $3.3 billion in India's largest-ever IPO, while LG Electronics Inc. is planning a similar listing with a target of up to $1.5 billion.

Indian Market Dynamics

Despite high valuations and a recent shift in foreign investment towards China, India's capital market remains robust. Local investors are actively participating, with over $70 billion in inflows during the first ten months of the year. 

Orkla itself has experienced strong performance, with its shares rising nearly 30% this year, resulting in a market value of approximately $9.2 billion.