MC EXCLUSIVE IPO-bound Orkla India's foreign promoter pocketed nearly Rs 540 crore dividend in FY25

MTR Foods

Orkla India Ltd’s foreign promoter, Orkla Asia Pacific Pte, pocketed nearly Rs 540 crore in dividend for the fiscal year 2025, a sum that exceeds the company’s annual profit in any previous year, according to its prospectus filing.

The company, which announced dividend for the first time in FY25, declared dividend of Rs 438 per share on a face value of Rs 10 each, amounting to a total payout of Rs 600.01 crore on March 7, 2025. This announcement came just ahead of filing draft papers with the Securities and Exchange Board of India.

Orkla Asia Pacific, holding a 90 percent stake in the company, received close to Rs 540 crore, while the remaining two promoters, Navas Meeran and Feroz Meeran, each with 5 percent stakes, received Rs 30 crore apiece. The total dividend payout significantly outstripped Orkla India’s net profits of Rs 255.69 crore in FY25 and Rs 226.33 crore in FY24.

The Norway-listed industrial investment company-backed entity, which owns brands including MTR and Eastern Spices, was set to open its initial public offering on October 29, with the anchor book opening a day earlier on October 28 and the offer closing on October 31. The IPO is structured entirely as an offer-for-sale of 2.28 crore equity shares by Orkla Asia Pacific and the two other promoters.

Orkla India, which markets spices and convenience foods such as ready-to-cook and ready-to-eat products, has a portfolio of around 400 items and a strong presence in Karnataka, Kerala, Andhra Pradesh, and Telangana.

Competing with listed peer Tata Consumer Products, the company has delivered steady financial performance, with net profit rising 9.8 percent to Rs 78.9 crore in the quarter ended June 2025 from Rs 71.9 crore a year earlier. Revenue increased six percent to Rs 597 crore from Rs 563.5 crore during the same period.