Functional & Innovative Foods IPO

About Functional & Innovative Foods IPO

The public issue of Functional & Innovative Foods Limited, a mainboard IPO, opens on TBA and closes on TBA. The basis of allotment is expected to be finalised on TBA. Shares will be credited to the eligible investors' demat accounts on TBA. The initiation of refunds will take place on TBA. The listing of shares is scheduled for TBA. The equity shares offered through the IPO are proposed to be listed on the BSE and the NSE.

The IPO comprises a fresh issue and an offer for sale. The fresh issue consists of up to 60,00,000 equity shares (aggregating up to ₹[TBA] crore). The offer for sale comprises up to 25,00,000 equity shares (aggregating up to ₹[TBA] crore). The total issue consists of up to 85,00,000 equity shares aggregating up to ₹[TBA] crore.

Functional & Innovative Foods Limited’s IPO price band is fixed at ₹TBA to ₹TBA per share. The lot size for an application is TBA shares. The minimum investment required for retail investors is ₹TBA (TBA shares). The minimum investment required for HNI investors is ₹TBA.

Incorporated in 2020, Functional & Innovative Foods Limited is a food manufacturing company engaged in contract manufacturing and the production of functional and innovative food products. The company manufactures a wide range of products, including nutritional ingredients, health foods, breakfast cereals, millet-based products, snacks and other value-added food products.

Objectives Of Functional & Innovative Foods Limited

• Funding capital expenditure for the setting up of a new manufacturing unit, Unit-V, at Namakkal, Tamil Nadu.
  
• Funding capital expenditure for the setting up of a new manufacturing unit, Unit-VI, at Dhar, Madhya Pradesh.
  
• Pre-payment or scheduled repayment of outstanding borrowings availed by the company.
  
• Investment in its wholly owned subsidiary, Christy Quality Foods (India) Private Limited ("CQFIPL"), for repayment/prepayment of borrowings availed by the subsidiary.
  
• Funding the long-term working capital requirements of the company.
  
• General corporate purposes.
  

Industry Outlook

India's food processing industry continues to benefit from rising domestic consumption, urbanisation and increasing demand for packaged and convenience foods. Real GDP is projected to grow by 7.6% in FY2026, while Private Final Consumption Expenditure (PFCE) has increased nearly 2.5 times between FY2015 and FY2026, supported by higher disposable incomes and changing consumer preferences.

The government continues to support domestic manufacturing through initiatives such as Make in India, the Production Linked Incentive (PLI) Scheme and higher investments in food processing infrastructure. The PLI scheme covers 14 sectors with an overall incentive outlay of around ₹2 trillion, encouraging investment in manufacturing capacity and value-added food products.

About Functional & Innovative Foods Limited

Functional & Innovative Foods Limited is an integrated food contract manufacturing company offering private label and full-service manufacturing solutions to businesses ranging from emerging brands to multinational FMCG companies. According to the D&B Report, it was one of the fastest-growing food manufacturing companies among its selected peers, recording a Revenue CAGR of 50.21% between FY2023 and FY2025.

The company offers end-to-end product development across ready-to-eat (RTE) and ready-to-cook (RTC) products, staples, sugar alternatives, spices and other food products. As of 31 December 2025, its portfolio comprised more than 25 product offerings and over 700 SKUs, making it one of the largest SKU portfolios among leading food contract manufacturers with a national presence.

Strengths Of Functional & Innovative Foods Limited

• One of the fastest-growing food manufacturing companies among its selected peers, with a Revenue CAGR of 50.21% between FY2023 and FY2025, according to the D&B Report.
  
• Strong private-label manufacturing capabilities supported by repeat customers. The company is well positioned to benefit from the growing private-label food manufacturing market in India.
  
• Diversified portfolio across 25+ product offerings and 700+ SKUs spanning RTE/RTC products, staples, sugar alternatives, spices and allied FMCG products.
  
• Integrated manufacturing infrastructure comprising 4 manufacturing units, 9 facilities and an installed capacity of 36,388.17 TPA. The facilities are supported by BRCGS, ISO 22000:2018 and other quality certifications.
  
• Dual-market presence through contract manufacturing and the "Nallas" brand. As of 31 December 2025, the branded portfolio comprised 14 products and 137 SKUs.
  
• Experienced management team supported by 641 employees across technical and operational functions as of 31 December 2025.
  

Risks Of Functional & Innovative Foods Limited

• Revenue is concentrated among a few customers. The top 10 customers contributed 60.36% of revenue during the nine months ended 31 December 2025.
  
• Profitability depends on the availability and pricing of raw materials such as soya, wheat and millets. Seasonal price fluctuations could impact margins.
  
• Operations are concentrated in Tamil Nadu and Karnataka. Any region-specific disruptions could affect business operations and revenue.
  
• The business is subject to stringent food quality and safety standards. Failure to comply could result in loss of customers or regulatory action.
  
• The proposed Unit-VI expansion into Madhya Pradesh is in a business segment/geography where the company has limited prior operating experience. Delays or execution challenges could affect future growth.
  
• Certain regulatory approvals and historical records relating to manufacturing facilities are pending or non-traceable. Any adverse regulatory action may affect operations.
  
• The company's business depends on the commercial success of its customers' products. Lower consumer demand for these products could affect future revenue.
  

The company has identified listed peers operating in a similar line of business for broad comparison purposes.

Note: Source – All the financial information for listed industry peers mentioned above is sourced from Financial Results/ Draft Red Herring Prospectus of the company for the year ended 31 March 2025 and stock exchange data dated 30 June 2026 to compute the corresponding financial ratios.

Anchor Investor Bidding DateTBA

Registrar Details
KFin Technologies Limited
Email: functional.ipo@kfintech.com
Tel: +91 40 6716 2222

Book Running Lead Manager
Beeline Capital Advisors Private Limited

Functional & Innovative Foods Limited Contact Details
1/374A Andipalayam Village Andipalayam Post, Tiruchengode,
Namakkal, Tamil Nadu, India, 637214
Email: compliance@functionalandinnovativefoods.com
Tel: 04288-252544

Functional & Innovative Foods Limited Business Model

Functional & Innovative Foods Limited operates in the food contract manufacturing industry, generating revenue primarily through private-label manufacturing and full-service contract manufacturing for food brands. Its product portfolio includes ready-to-eat (RTE) and ready-to-cook (RTC) products, staples, sugar alternatives, spices and other allied FMCG products. The company also markets branded food products under its flagship brand, "Nallas".

Functional & Innovative Foods Limited Growth Trajectory

Functional & Innovative Foods Limited's Total Income for FY25 was ₹260.76 crores, whereas in FY24 and FY23 it was ₹162.02 crores and ₹115.57 crores, respectively. The Profit After Tax for FY25 was ₹23.22 crores, whereas in FY24 and FY23 it was ₹13.76 crores and ₹3.22 crores, respectively.

Its EBITDA for FY25 was ₹33.83 crores, whereas in FY24 and FY23 it was ₹20.87 crores and ₹6.88 crores, respectively.

Functional & Innovative Foods Limited Market Position

Functional & Innovative Foods Limited is an integrated food contract manufacturing company serving emerging brands as well as multinational FMCG companies. According to the D&B Report, it was one of the fastest-growing food manufacturing companies among its selected peers, recording a Revenue CAGR of 50.21% between FY2023 and FY2025.

As of 31 December 2025, the company offered more than 25 product offerings and over 700 SKUs. It served 106 major customers, including 33 repeat customers, across 22 states and 3 Union Territories in India, while also exporting to countries including the UAE, Bahrain, Oman, Qatar, Tanzania and Canada.

As of 31 March 2025, the company's Total Income, Profit After Tax and EBITDA stood at ₹260.76 crores, ₹23.22 crores and ₹33.83 crores, respectively.

How To Apply for Functional & Innovative Foods IPO?

• Step 1: Log in to your Kotak Neo Demat account – access IPO investments and select the current IPO section.
• Step 2: Specify IPO details – enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID – after entering your UPI ID, click submit. This places your bid with the exchange.
• Step 4: Mandate Notification – your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request – your funds will be blocked once you approve the mandate request on your UPI.