Tamil Nadu-based extruded snacks manufacturer Functional & Innovative Foods has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India for raising funds via initial public offering. According to reports from Live Mint, the IPO comprises 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 of up to 25,00,000 equity shares by promoter Senthil Kumar Chinnusamy. The company plans to utilize proceeds for capacity expansion, debt repayment, subsidiary investment, working capital and general corporate purposes. As reported by Live Mint, the company plans to utilize ₹17.3 crore and ₹19.6 crore of proceeds from the fresh issue for setting up of Unit-V and Unit-VI respectively. The proceeds will also be used for prepayment or scheduled repayment, in full or in part, of certain outstanding borrowings of the company.
The company has demonstrated strong financial performance with profit of ₹23.2 crore for fiscal 2025, representing a 68.8 percent growth from ₹13.7 crore in the previous year. As reported by Live Mint, for the financial year ended March 31, 2025, the company reported revenue of ₹2,601.17 million, EBITDA of ₹338.29 million and PAT of ₹232.22 million. For the nine-month period ended December 31, 2025, the company recorded revenue of ₹2,324.43 million, EBITDA of ₹369.66 million and PAT of ₹256.08 million. According to Live Mint, revenue in the same period increased 61.1 percent to ₹260.1 crore from ₹161.4 crore.
Functional & Innovative Foods is an integrated food contract manufacturing company offering a diversified product portfolio to businesses ranging from emerging brands to multinational FMCG companies, with a focus on quality and food safety. According to Live Mint, the company 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. The company operates through four manufacturing units comprising nine facilities in Tamil Nadu, with its product portfolio comprising more than 25 product offerings and more than 700 stock keeping units (SKUs). As reported by Live Mint, its manufacturing operations are supported by 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.
The company has outlined specific utilization of IPO proceeds, with ₹30 crore allocated for loan repayment, ₹15 crore for working capital requirements, and the remainder funds for general corporate purposes. According to Live Mint, the company plans to utilize 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 remaining funds will be utilized to meet long-term working capital requirements and for general corporate purposes. In addition, the company will invest in its wholly owned subsidiary, Christy Quality Foods (India) Private Limited, through debt or equity, to enable the repayment or prepayment of a portion of the subsidiary's outstanding borrowings. Beeline Capital Advisors Private Limited has been appointed as the book-running lead manager to the issue, while KFin Technologies Limited is the registrar.
