Functional & Innovative Foods IPO Gets SEBI Nod: Food Manufacturer To Offer 85 Lakh Shares

Functional & Innovative Foods has received SEBI approval for its proposed initial public offering (IPO) of up to 85 lakh equity shares. The issue will comprise 60 lakh fresh shares and an offer for sale (OFS) of up to 25 lakh shares by promoter Senthil Kumar Chinnusamy. The IPO is proposed to be listed on both the NSE and BSE.

The company had filed its Draft Red Herring Prospectus (DRHP) with SEBI on June 30, 2026, and the regulator issued its observations on the proposed IPO between September 21 and September 25. The price band, subscription dates and lot size are yet to be announced.

The fresh issue proceeds will be used to set up two manufacturing facilities at Namakkal in Tamil Nadu and Dhar in Madhya Pradesh. The company also plans to use the money to repay or prepay certain borrowings, meet working capital requirements and support the debt repayment of its wholly owned subsidiary, Christy Quality Foods (India) Pvt Ltd. The proceeds from the 25 lakh-share OFS will go to the promoter selling the shares.

Functional & Innovative Foods IPO: Issue Details And Use Of Funds

The two new facilities are planned as part of the company's expansion. Unit V at Namakkal will focus on sprouted and fortified products, while the proposed Unit VI at Dhar will manufacture products from the company's existing portfolio.

Functional & Innovative Foods also plans to use part of the IPO proceeds for capital expenditure and working capital. The company has said some of the funds will be used towards the outstanding borrowings of Christy Quality Foods (India) Pvt Ltd.

The company is an integrated food contract manufacturer and supplies products to emerging brands, institutional buyers and multinational FMCG companies. Its portfolio includes ready-to-eat and ready-to-cook foods, protein staples and pulses, spices, sugar alternatives, pre-mixes, breakfast cereals and other food products.

It also sells products under the NALAAS brand through its wholly owned subsidiary. As of December 31, 2025, the company had more than 25 product offerings and over 700 SKUs. It served 106 major customers across 22 states and three Union Territories, including 33 repeat customers. Its products were also exported to markets including the UAE, Bahrain, Oman, Qatar, Tanzania and Canada.

Functional & Innovative Foods operates four manufacturing units comprising nine production facilities in Tamil Nadu. Its effective installed capacity increased from 24,406.20 tonnes in FY23 to 42,620.76 tonnes in FY25. Capacity utilisation stood at 90.95% for the nine months ended December 31, 2025.

Functional & Innovative Foods Financials

The company's revenue from operations rose to ₹260.12 crore in FY25 from ₹161.43 crore in FY24 and ₹115.28 crore in FY23. EBITDA increased to ₹33.83 crore in FY25 from ₹20.87 crore in FY24 and ₹6.88 crore in FY23.

Profit after tax stood at ₹23.22 crore in FY25, compared with ₹13.76 crore in FY24 and ₹3.22 crore in FY23. For the nine months ended December 31, 2025, revenue from operations stood at ₹232.44 crore. EBITDA was ₹36.97 crore and profit after tax came in at ₹25.61 crore.

The EBITDA margin for the nine-month period stood at 15.90%, compared with 13.01% in FY25. The PAT margin was 11% during the nine months ended December 31, 2025, against 8.91% in FY25.

As of December 31, 2025, Functional & Innovative Foods had 641 permanent employees. Its manufacturing facilities handle processes including cleaning, grading, blending, extrusion, roasting, drying and packaging.

The SEBI approval clears a key stage for the proposed IPO. The company is yet to announce the price band and subscription schedule.

Beeline Capital Advisors is the book-running lead manager for the issue, while KFin Technologies is the registrar.

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