Functional & Innovative Foods files DRHP with SEBI to raise funds via IPO

The company is an integrated food contract manufacturing company offering a diversified product portfolio to businesses ranging from emerging brands to multinational FMCG companies. AI Quick ReadFunctional & Innovative Foods Limited, an integrated food contract manufacturing company offering a diversified product portfolio, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in preparation for its Initial Public Offering (IPO).

The IPO will comprise up to 85,00,000 equity shares with a face value of ₹10 each, consisting of a fresh issue of up to 60,00,000 equity shares and an offer for sale (OFS) of up to 25,00,000 equity shares.

The company plans to utilise the net proceeds from the fresh issue to fund capital expenditure for setting up two new manufacturing facilities—Unit V at Namakkal, Tamil Nadu, and Unit VI at Dhar, Madhya Pradesh.

The proceeds will also be used for the prepayment or scheduled repayment, in full or in part, of certain outstanding borrowings of the company.

In addition, the company will invest in its wholly owned subsidiary, Christy Quality Foods (India) Private Limited (CQFIPL), through debt or equity, to enable the repayment or prepayment of a portion of the subsidiary's outstanding borrowings.

The remaining funds will be utilised to meet long-term working capital requirements and for general corporate purposes.

For the financial 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, the company reported revenue of ₹2,324.43 million, EBITDA of ₹369.66 million, and PAT of ₹256.08 million.

Beeline Capital Advisors Private Limited is the book-running lead manager to the issue, while KFin Technologies has been appointed as the registrar to the offer.

The company is an integrated food contract manufacturing company offering a diversified product portfolio to businesses ranging from emerging brands to multinational FMCG companies.

It primarily operates through private-label and full-service contract manufacturing arrangements, providing end-to-end product development and manufacturing solutions across ready-to-eat (RTE), ready-to-cook (RTC), staples, sugar alternatives, spices, and other allied FMCG products.

Its manufacturing operations are supported by four manufacturing units comprising nine production facilities in Tamil Nadu, equipped with automated systems for material handling, processing, and packaging.

Through its wholly owned subsidiary, Christy Quality Foods (India) Private Limited, the company also manufactures and markets branded food products under its flagship "Nallas" brand through an extensive distribution network across Tamil Nadu.

Guided by its philosophy of delivering functional and innovative food products, the company continues to strengthen its presence in the convenience, health, and functional foods segments.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.