Functional & Innovative Foods Limited, an integrated food contract manufacturing company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The IPO will consist of up to 8,500,000 equity shares with a face value of ₹10 each, comprising a Fresh Issue of up to 6,000,000 Equity Shares and an Offer for Sale (OFS) of up to 2,500,000 Equity Shares.
IPO Objectives and Fund Utilization
The company plans to use the proceeds from the IPO for several key purposes: funding capital expenditure for setting up Unit-V at Namakkal, Tamil Nadu, and Unit-VI at Dhar, Madhya Pradesh; prepayment or scheduled repayment of certain outstanding borrowings; investment in its wholly owned subsidiary Christy Quality Foods (India) Private Limited (CQFIPL) for repayment of its borrowings; funding long-term working capital requirements; and general corporate purposes.
Financial Performance
For the fiscal year ended March 31, 2025, the company reported revenue of ₹2,601.17 million, EBITDA of ₹338.29 million, and profit after tax (PAT) of ₹232.22 million. For the nine-month period ended December 31, 2025, revenue stood at ₹2,324.43 million, EBITDA at ₹369.66 million, and PAT at ₹256.08 million, indicating strong growth momentum.
Offer Details and Advisors
The Book Running Lead Manager for the IPO is Beeline Capital Advisors Private Limited, and KFin Technologies Limited is the Registrar to the Offer. The company's diversified product portfolio includes Ready-to-Eat (RTE), Ready-to-Cook (RTC), staples, sugar alternatives, spices, and other FMCG products, serving both domestic and international markets through a B2B model.
About the Company
Functional & Innovative Foods operates four manufacturing units with nine facilities in Tamil Nadu, equipped with automated systems for material handling, processing, and packaging. Through its subsidiary Christy Quality Foods, it markets branded products under the 'Nallas' brand in Tamil Nadu. The company focuses on convenience, health, and functional foods segment.
