Core Viewpoint - The company, Orkla India, is planning an IPO to raise ₹1,668 crore, appealing to long-term investors with a high-risk appetite due to its revenue and profitability growth over the past three years [1][10]. Business Overview - Incorporated in 1996, Orkla India is a subsidiary of Norway-listed Orkla ASA, specializing in spices and convenience foods, exporting to 45 countries [3][10]. - The company holds a significant market position in South India, contributing 70% of its revenue, with a market share of 41.8% in Kerala, 31.2% in Karnataka, and 15.2% in Andhra Pradesh and Telangana [10]. - The company operates nine manufacturing units and additional contract manufacturing facilities in the UAE, Thailand, and Malaysia, with a combined installed capacity of 180,000 tonnes per annum and a capacity utilization of 46% [5][10]. Financial Performance - Revenue and operating profit (EBITDA) grew by 5% and 12.6% annually, reaching ₹2,394.7 crore and ₹396.4 crore, respectively, in FY23-25 [6][10]. - The EBITDA margin improved to 16.6% in FY25 from 14.4% in FY23, despite slower revenue growth in FY25 due to lower price realization in key spices [6][10]. - Profit before tax increased by 17.6% to ₹355 crore, while net profit decreased to ₹255.7 crore from ₹339.1 crore due to deferred tax adjustments related to the Eastern Condiments merger [7][10]. - Operating cash flow improved significantly to ₹391.7 crore in FY25 from ₹190.4 crore in FY23 [8][10]. - In the June 2025 quarter, revenue and net profit rose by 6% and 10% year-on-year, reaching ₹597 crore and ₹78.9 crore, respectively [8][10]. Valuation - The company is expected to demand a price-earnings (P/E) multiple of up to 39 based on post-IPO equity and net profit for FY25, with no direct publicly listed peers in the spices-to-food-products sector [9][10]. Investment Activity - Orkla India has raised approximately ₹500 crore from anchor investors ahead of its IPO, with notable investors including Nippon India MF, Aditya Birla Sun Life MF, and others [10].

Core Viewpoint - Orkla's Indian subsidiary is set to launch its initial public offering (IPO) next week after receiving regulatory approval, with the offer window scheduled from October 29 to October 31, and anchor investors submitting bids on October 28 [1]. Group 1: IPO Details - The IPO will involve the sale of up to 22.8 million shares, with Orkla Asia Pacific planning to sell approximately 20.5 million shares, representing around 90% of the total offered [2]. - The price band for the IPO is set between Rs695 ($7.9) and Rs730 per share [1]. Group 2: Company Operations - Orkla India operates in the spices and convenience foods sectors under the MTR and Eastern brands, offering a range of products for meals and beverages [3]. - In the quarter ending June 30, spices accounted for 66.3% of Orkla India's revenue, with spice sales valued at Rs3.89 billion for that quarter and annual sales of Rs15.71 billion for fiscal 2025 [3]. - Convenience foods contributed 33.7% of revenue in the same quarter, showing an increase from 31.5% in fiscal 2024 [4]. Group 3: Historical Context - Orkla acquired MTR Foods in 2007, which later purchased Eastern Condiments in 2020 [4]. - Subject to final approvals, trading of Orkla India's shares is expected to commence around November 6 [4].