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Functional & Innovative Foods Gets SEBI Nod for IPO: Plans Expansion and Debt Repayment
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Moneycontrol•28-09-2026, 18:29
Functional & Innovative Foods Gets SEBI Nod for IPO: Plans Expansion and Debt Repayment
- •Functional and Innovative Foods, a Tamil Nadu-based food contract manufacturer, received SEBI approval for its proposed Initial Public Offering (IPO).
- •The company plans to raise funds through a public issue of 85 lakh shares, comprising a fresh issue of 60 lakh shares and an Offer For Sale (OFS) of 25 lakh shares by promoter Senthil Kumar Chinnusamy.
- •Proceeds from the IPO will fund new manufacturing units in Namakkal (Tamil Nadu) and Dhar (Madhya Pradesh), repay debt for the company and its subsidiary Christy Quality Foods (India), and cover long-term working capital needs.
- •Functional and Innovative Foods operates on a business-to-business model, specializing in private-label manufacturing for clients like Wholsum Foods (Slurrp Farm), Fitshit Health Solutions (The Whole Truth), Kellogg India, and Marico.
- •The company offers a diverse product portfolio including ready-to-eat (RTE) and ready-to-cook (RTC) items, staples, sugar alternatives, and spices, with private-label manufacturing contributing 66.87% of its revenue for the nine months ended December 2025.
Key Questions Answered
The public issue comprises a total of 85 lakh equity shares, which includes a fresh issue of 60 lakh shares and an offer for sale (OFS) of 25 lakh shares by promoter Senthil Kumar Chinnusamy.
The company plans to use Rs 17.3 crore and Rs 19.6 crore to set up new manufacturing units at Namakkal and Dhar, Rs 30 crore to repay debt, and Rs 15 crore for long-term working capital requirements.
Securities and Exchange Board of India (SEBI) approved the company's IPO papers by issuing observations on the draft document on September 25, 2026.
