Functional & Innovative Foods IPO
Functional & Innovative Foods IPO — date, issue size, SEBI status & DRHP details 2026
Functional & Innovative Foods filed its draft red herring prospectus (DRHP) with SEBI on 6 Jul 2026 for an IPO of a fresh issue of up to 60,00,000 shares and an offer for sale of up to 25,00,000 shares. The draft is no longer on SEBI's list of pending offer documents. The price band, lot size and IPO dates are not announced yet.
Functional & Innovative Foods is a food contract manufacturer that makes private label ready-to-eat, ready-to-cook, staples and spices products for 413 customers. Revenue from operations grew from Rs 115.28 crore in FY2023 to Rs 260.12 crore in FY2025.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the DRHP filed with SEBI
Where the Functional & Innovative Foods IPO stands
From draft to listing. Today is 11 November 2026.
- DRHP filed 06 Jul 2026
- SEBI observations Done
- RHP & price band TBA
- Bidding TBA
- Listing TBA
| DRHP filed with SEBI | 6 Jul 2026 |
|---|---|
| SEBI status | SEBI review completed |
| RHP, price band & dates | Not announced |
Functional & Innovative Foods IPO details
The offer as the DRHP describes it. Terms can change in the RHP.
| Issue type | Fresh issue and offer for sale |
|---|---|
| Fresh issue | Up to 60,00,000 shares |
| Offer for sale | Up to 25,00,000 shares |
| Total issue size | Depends on the price band |
| Face value | ₹10 per share |
| Proposed listing | BSE, NSE |
| Price band | Not announced (comes with the RHP) |
| Lot size | Not announced |
| IPO dates | Not announced |
| Book running lead managers | Beeline Capital Advisors Private Limited |
| Registrar | KFin Technologies Limited |
Who is selling in the offer for sale
| Selling shareholder | Type | Offering | Avg. cost / share |
|---|---|---|---|
| Senthil Kumar Chinnusamy | Promoter | Up to 25,00,000 shares | Rs 9.82 |
The promoter selling shareholder's weighted average cost of acquisition is Rs 9.82 per share, and his acquisitions in the last one year were all through a bonus issue.
Strengths & risks
The case for and against, from the DRHP's own numbers and risk factors.
Strengths · 6
- 01Revenue from operations grew from Rs 115.28 crore in FY2023 to Rs 260.12 crore in FY2025, a compounded growth of 50.21%.
- 02Profit after tax rose from Rs 3.22 crore in FY2023 to Rs 23.22 crore in FY2025.
- 03EBITDA margin improved from 5.97% in FY2023 to 13.01% in FY2025 and 15.90% in the nine months to 31 December 2025.
- 04The company served 413 contract manufacturing customers in the nine months to December 2025, including Kellogg India, Marico and Hindustan Unilever.
- 05Operating cash flow was positive at Rs 12.57 crore in FY2025 and Rs 7.58 crore in FY2024, after a negative Rs 5.17 crore in FY2023.
- 06It sells in 22 Indian states and 3 Union Territories through four units with nine facilities, and also has the branded Nallas business.
Risks · 9
- 01The top 10 customers gave 69.75% of revenue from operations in FY2025, up from 46.24% in FY2023.
- 02The largest customer alone gave 24.09% of FY2025 revenue, against 10.74% in FY2024.
- 03The statutory auditor has given an adverse remark on the restated financials because the audit trail feature in the accounting software was not enabled.
- 04Consent to Establish approvals for some manufacturing facilities, and old records for some leased premises, are not traceable.
- 05Total borrowings were Rs 40.41 crore as on 31 December 2025, against a net worth of Rs 71.44 crore.
- 06Operations are concentrated in Tamil Nadu and Karnataka, and raw materials like soya, wheat and millets have no fixed-price supplier contracts.
- 07The proposed Unit-V for sprouted and fortified products is in a segment where the company has limited operating experience.
- 08Of the 85,00,000 shares in the offer, 25,00,000 are an offer for sale by the promoter, and that money does not go to the company.
- 09The company reported negative net cash from operating, investing and financing activities in some past periods.
Functional & Innovative Foods financials
Restated figures in ₹ crore, as reported in the DRHP.
| ₹ crore | 31 Dec 2025 (9 months) | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Revenue from Operations | 232.44 | 260.12 | 161.43 | 115.28 |
| Total Income | 232.90 | 260.76 | 162.02 | 115.57 |
| EBITDA | 36.97 | 33.83 | 20.87 | 6.88 |
| Profit After Tax | 25.61 | 23.22 | 13.76 | 3.22 |
| Net Worth | 71.44 | 27.55 | 26.72 | 12.94 |
| Total Borrowing | 40.41 | 34.40 | 29.64 | 22.77 |
Key ratios (FY25)
P/E and market capitalisation need the price band and are added when the RHP is out.
Where the IPO money goes
How Functional & Innovative Foods plans to use the fresh issue proceeds.
About Functional & Innovative Foods
Most of the work is private label manufacturing. The company makes and packs food under its customers' brands and offers ready formulations with choices on packaging design, pack size and flavour. Its range covers Ready to Eat (RTE) and Ready to Cook (RTC) products, staples, sugar alternatives, spices and other allied FMCG products. A smaller part is full-service contract manufacturing.
The business is mainly B2B. Customers named in the document include Slurrp Farm, The Whole Truth, Urban Platter, Big Basket and Millet Bank, and multinational brands such as Kellogg India, Marico and Hindustan Unilever. It had 413 contract manufacturing customers in the nine months ended 31 December 2025.
The company also has a B2C business through its wholly-owned subsidiary Christy Quality Foods (India) Private Limited, which sells branded spices, staples and RTE/RTC products under the Nallas brand. These reach consumers through distributors, fair price shops, cooperative stores and police canteens, mostly in Tamil Nadu. The company had 450 distributors as on 31 December 2025.
Operations run through four manufacturing units with nine facilities, all in Tamil Nadu. The company serves 22 Indian states and 3 Union Territories, and also sells to the UAE, Tanzania and Canada. It reports a single segment, food contract manufacturing. The promoter and Managing Director is Senthil Kumar Chinnusamy, who has over 11 years of experience in food manufacturing.
The industry
The document cites a Dun & Bradstreet report. It puts India's food contract manufacturing market at Rs 405 billion in Fiscal 2021 and about Rs 656 billion in Fiscal 2026, a CAGR of 10.1%. The Ready-to-Cook market grew from Rs 423 billion to Rs 709 billion over the same period, a CAGR of about 10.9%. The spices market grew from Rs 600 billion to Rs 1,045 billion, a CAGR of 11.7%, and the food staples market from Rs 20,760 billion to Rs 28,340 billion, a CAGR of 6.4%.
Customer concentration: Top 5 customers gave 51.97% of FY2025 revenue (41.31% in FY2024), and the top 10 gave 69.75% in FY2025.
Promoters & management
The promoter Senthil Kumar Chinnusamy holds 1,86,76,920 shares, or 99.93%, before the issue, and there is no other promoter group member.
| Name | Role |
|---|---|
| Senthil Kumar Chinnusamy | Managing Director and Promoter |
| A S Chenniapan | Whole time Director |
| Sudhir Reddy Rebala | Chairman and Non-Executive Director |
| S Pugalenthiran | Chief Financial Officer |
The bankers & the filings
Who is running the issue, and the SEBI documents this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Beeline Capital Advisors Pvt. Ltd.
10 issues handled (6 mainboard, 4 SME)Best listing: Mamata Machinery (+146.9%). Weakest: Modern Diagnostic & Research Centre (0.0%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Functional & Innovative Foods IPO: frequently asked
When will the Functional & Innovative Foods IPO open?
The Functional & Innovative Foods IPO dates are not announced yet. The draft is no longer on SEBI's list of pending offer documents. The company announces the dates and price band after it files its red herring prospectus (RHP) with the Registrar of Companies, usually a week or two before bidding opens. This page switches to the full IPO page with dates, price band and lot size as soon as that happens.
What is the Functional & Innovative Foods IPO price band?
The price band is not announced yet. It is set by the company and its lead managers and published with the RHP, a few days before the issue opens. The DRHP fixes only the face value of ₹10 per share.
How big is the Functional & Innovative Foods IPO?
Functional & Innovative Foods filed its draft red herring prospectus (DRHP) with SEBI on 6 Jul 2026 for an IPO of a fresh issue of up to 60,00,000 shares and an offer for sale of up to 25,00,000 shares. The final size in rupees depends on the price band.
Has SEBI approved the Functional & Innovative Foods IPO?
The draft is no longer on SEBI's list of pending offer documents. SEBI observations are valid for 12 months; the IPO has to open within that window or the company must file again.
What is the Functional & Innovative Foods IPO GMP?
There is no grey market premium to report before the price band is announced. IPO Guru starts tracking the Functional & Innovative Foods IPO GMP once the RHP and price band are out.
What will Functional & Innovative Foods do with the IPO money?
As per the DRHP: Set up a new manufacturing unit at Namakkal, Tamil Nadu (Proposed Unit-V) for sprouted and fortified products; Set up a new manufacturing unit at Dhar, Madhya Pradesh (Proposed Unit-VI) for the existing product portfolio; Repay or prepay certain borrowings of the company; Invest in subsidiary Christy Quality Foods (India) Private Limited to repay its borrowings.
Who are the lead managers of the Functional & Innovative Foods IPO?
The book running lead managers are Beeline Capital Advisors Private Limited. KFin Technologies Limited is the registrar.
Is Functional & Innovative Foods profitable?
Yes. Profit after tax was Rs 23.22 crore in FY2025 and Rs 25.61 crore in the nine months to 31 December 2025.
Who owns Functional & Innovative Foods?
Promoter Senthil Kumar Chinnusamy holds 99.93% before the issue. He is also the only selling shareholder, offering up to 25,00,000 shares.
What does Functional & Innovative Foods make?
It makes ready-to-eat and ready-to-cook foods, staples, sugar alternatives and spices, mostly under customers' private labels. Its subsidiary sells branded products under the Nallas name.
Other companies in the IPO pipeline
Mainboard companies with drafts filed with SEBI, same bankers first.
Know the day the price band is out.
We track every mainboard draft from SEBI filing to listing. When Functional & Innovative Foods files its RHP, this page becomes the full IPO page with dates, price band, lot size, GMP and subscription.
Not investment advice. Figures are from the company's draft offer document filed with SEBI and may change in the RHP.
