(Bloomberg) -- Norway’s Orkla ASA is considering an initial public offering of its Indian business next year that could raise as much as $400 million, according to people familiar with the matter.

Orkla may file for an IPO in Mumbai as soon as next quarter, the people said, asking not to be identified as the information isn’t public. The Oslo-based company is working with advisers on the potential share sale, the people said. It could seek a valuation of over $2 billion for the unit, one of the people said. 

Deliberations are ongoing and details of the offering such as size and timing may change, the people said. 

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 owns India’s MTR Foods, a maker of ready meals and spices, as well as Eastern Condiments, in which it bought a controlling stake in 2021.

Several foreign firms are listing their Indian units to take advantage of the country’s rich valuations. In October, South Korea’s Hyundai Motor Co.’s Indian business raised $3.3 billion in the country’s biggest IPO ever. LG Electronics Inc. is planning to list its local unit to raise as much as $1.5 billion, Bloomberg has reported.

Local media including Mint earlier this year reported that Orkla was exploring a public listing after completing a restructuring.

High valuations as well as renewed interest in China have prompted foreign investors to pull money out of India, but local investors are picking up the slack, with more than $70 billion in inflows in the first 10 months of the year.

Orkla’s shares have risen almost 30% this year, giving the company a market value of about $9.2 billion.

--With assistance from Heidi Taksdal Skjeseth.

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