Functional & Innovative Foods Submits DRHP to Sebi in Preparation for Upcoming IPO
Functional & Innovative Foods has recently filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi) as it prepares for its Initial Public Offering (IPO). The company aims to issue up to 8,500,000 equity shares, consisting of a fresh issue of 6,000,000 equity shares and an offer for sale of 2,500,000 equity shares, with a face value of Rs 10 each. The proceeds from the IPO are earmarked for several key initiatives, including funding the establishment of new manufacturing units in Tamil Nadu and Madhya Pradesh, addressing outstanding borrowings, supporting its wholly-owned subsidiary, and meeting long-term working capital requirements.
The company’s financial performance indicates a stable outlook, with revenue of Rs 2,601.17 million, EBITDA of Rs 338.29 million, and a profit after tax (PAT) of Rs 232.22 million for the period ended March 31, 2025. In the nine-month period ending December 31, 2025, it reported revenues of Rs 2,324.43 million, EBITDA of Rs 369.66 million, and PAT of Rs 256.08 million. These figures reflect a healthy growth trajectory, underscoring the potential for investment in the company as it caters to a burgeoning market in food manufacturing across various consumer segments.
Investor sentiment surrounding the IPO seems optimistic, bolstered by the company’s focus on quality and safety in food production, as well as its diversified product offerings targeting emerging brands and multinational FMCG companies. As Functional & Innovative Foods plans to enhance its manufacturing capabilities and operational efficiency through increased funding, Indian investors may find it appealing, given the growing demand for high-quality food products in both domestic and international markets. The success of this IPO could further indicate investor confidence in the fast-evolving Indian food processing sector.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)