New Delhi: Orkla India, which owns spices and condiments brands MTR and Eastern, has filed preliminary papers with markets regulator Sebi for an initial public offering (IPO).

The company's IPO is a complete offer for sale (OFS) of 2.28 crore equity shares by promoter and other shareholders, according to the draft red herring prospectus (DRHP) filed on Tuesday.

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

At present, the 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 such 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.

According to Technopak report, the Indian packaged food market was estimated at Rs 10.18 lakh crore in FY24, reflecting a CAGR of 10.8 per cent compared to FY19.ICICI Securities, Citigroup Global Markets India, JP Morgan India, and Kotak Mahindra Capital Company are the book-running lead managers to the issue.

In March, Orkla India appointed four independent directors as part of restructuring of its board. 

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