Functional & Innovative Foods Files IPO Papers With SEBI

Tamil Nadu-based Functional & Innovative Foods has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The company plans to use the fresh capital to expand its manufacturing footprint, repay borrowings and strengthen its working capital.

What Does The IPO Consist Of?

The proposed IPO includes a fresh issue of 60 lakh equity shares and an offer for sale (OFS) of 25 lakh shares by promoter Senthil Kumar Chinnusamy. The company has appointed Beeline Capital Advisors as the merchant banker for the issue.

Functional & Innovative Foods operates as a contract manufacturer and private-label food producer, supplying products under customers' brands. Its portfolio spans ready-to-eat and ready-to-cook foods, staples, sugar alternatives, spices and other FMCG products. The company currently operates four manufacturing units with nine facilities in Tamil Nadu, offering more than 25 product categories and over 700 stock keeping units (SKUs).

How Will The Company Use The IPO Proceeds?

The company plans to spend ₹17.3 crore on establishing Unit V and another ₹19.6 crore for Unit VI. Besides this, it plans to use ₹30 crore for loan repayment and ₹15 crore as working capital, while the balance funds will be allocated for general corporate purposes. The expansion will raise production capacity, which will allow the company to serve the increasing demand from Indian as well as international FMCG brands that outsource their food production.

Also Read- Ratnadeep Retail Files IPO Papers With SEBI To Raise ₹400 Crore For Store Expansion

The company reported a 68.8% jump in profit to ₹23.2 crore in FY25, compared with ₹13.7 crore in the previous financial year. Revenue also grew 61.1% to ₹260.1 crore from ₹161.4 crore during the same period. For the April-December FY26 period, Functional & Innovative Foods posted a profit of ₹25.6 crore on revenue of ₹232.4 crore, indicating continued business growth ahead of its proposed public issue.