Functional & Innovative Foods IPO
IPO Details
Bidding Dates
To be announced
Minimum Investment
To be announced
Price Range
To be announced
Maximum Investment
To be announced
Retail Discount
To be announced
Issue Size
To be announced
Investor category and sub category
Qualified Institutional Buyers (QIB) | Retail Individual Investors (RII) | Non-institutional Investors (NII)About Functional & Innovative Foods IPO
Functional & Innovative Foods IPO is a book-building issue of up to 85 lakh equity shares of face value ₹10 each, comprising a fresh issue of up to 60 lakh equity shares and an offer for sale (OFS) of up to 25 lakh equity shares by promoter Senthil Kumar Chinnusamy. The equity shares are proposed to be listed on both BSE and NSE.
Beeline Capital Advisors Private Limited is the book-running lead manager to the issue, while KFin Technologies Limited is the registrar. Key details, including the IPO dates, price band, and lot size, are yet to be announced.
About Functional & Innovative Foods Limited
Functional & Innovative Foods Limited was originally incorporated as "Christy Novel & Innovative Foods Private Limited" on September 12, 2020, as a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation issued by the Registrar of Companies, Central Registration Centre. The name was subsequently changed to "Functional & Innovative Foods Private Limited" on March 26, 2021. The business was later converted into a public limited company, and the name was changed to "Functional & Innovative Foods Limited" pursuant to a fresh certificate of incorporation issued on February 23, 2026.
The company is an integrated food contract manufacturing company offering a diversified product portfolio, including ready-to-eat (RTE) and ready-to-cook (RTC) products, protein staples/pulses, spices, sugar alternatives, pre-mixes, breakfast cereals, and allied FMCG products. It provides end-to-end contract and private-label manufacturing solutions to emerging brands, institutional buyers, and multinational FMCG corporations, alongside marketing branded products under its flagship "NALAAS" brand through its wholly owned subsidiary, Christy Quality Foods (India) Private Limited.
Functional & Innovative Foods operates four manufacturing units comprising nine facilities located across Tiruchengode (Namakkal District) and Erode in Tamil Nadu, with its registered and corporate office situated at Andipalayam Village, Tiruchengode. These units are equipped with specialised equipment for cleaning, grading, blending, extrusion, roasting, drying, and packaging, enabling the company to deliver customised and scalable food manufacturing solutions.
The company has steadily expanded its operational capacity over the years, increasing its effective installed capacity from 24,406.20 tonnes in Fiscal 2023 to 42,620.76 tonnes in Fiscal 2025 (and 36,388.17 tonnes for the nine months ended December 31, 2025). It operates primarily on a B2B model, serving domestic FMCG brand owners across India, while also maintaining an international export presence in markets including the United Arab Emirates, Qatar, Oman, Bahrain, and Tanzania.
Functional & Innovative Foods has built its business around product quality, food safety regulations, and customer-centric formulations, backed by a workforce of 641 permanent employees as of December 31, 2025.
Industry Outlook
India’s packaged food market increased from ₹8,640 billion in FY2021 to an estimated ₹12,000 billion in FY2026, reflecting a historical CAGR of 6.8%.
The sector is projected to reach ₹16,000 billion by FY2030, accelerating at a forward CAGR of approximately 7.5% between FY2026 and FY2030.
The domestic food contract manufacturing segment is expanding faster than the overall packaged food market, registering an estimated CAGR of 12.5%, supported by FMCG brand outsourcing and asset-light models.
Accelerating conversion from loose, unbranded commodities to branded, certified packaged foods driven by urbanization, higher disposable incomes, and food safety hygiene awareness.
Rapid penetration of D2C brands and 10-to-20-minute delivery apps broadening consumer access, driving trial velocity, and reshaping supply chain economics for contract packagers.
Brands layering specialty, functional, and enriched product lines atop base commodities, leading to value growth outpacing volume growth across major food categories.
Functional & Innovative Foods IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
Funding capital expenditure for setting up a new manufacturing unit at Namakkal, Tamil Nadu, dedicated to sprouted and fortified products.
Funding capital expenditure for establishing a new manufacturing facility at Dhar, Madhya Pradesh, to manufacture the company's existing product portfolio
Prepayment or scheduled repayment, in full or in part, of certain outstanding borrowings availed by the company
Funding long-term working capital requirements of the company
Funding general corporate activities
Financial Performance of Functional & Innovative Foods Limited
Particulars | 9M FY26 | FY25 | FY24 | FY23 |
Revenue from operations (₹ lakh) | 23,244.30 | 26,011.70 | 16,142.70 | 11,528.40 |
EBITDA (₹ lakh) | 3,696.50 | 3,382.90 | 2,086.50 | 688.20 |
EBITDA Margin (%) | 15.90% | 13.01% | 12.93% | 5.97% |
PAT (₹ lakh) | 2,560.80 | 2,322.20 | 1,375.90 | 322.30 |
PAT Margin (%) | 11.00% | 8.91% | 8.49% | 2.79% |
Net Worth / Total Equity (₹ lakh) | 7,143.50 | 2,755.30 | 2,671.60 | 1,293.50 |
RoNW / Return on Equity (%) | 51.74% | 85.58% | 69.40% | 42.71% |
RoCE (%) | 62.06% | 58.23% | 49.33% | 28.98% |
Functional & Innovative Foods Limited Peer Details Comparison
Name of the Company | Consolidated / Standalone | Face Value (₹ per share) | Revenue from Operations (₹ in lakhs) | Basic EPS (₹) | Diluted EPS (₹) | NAV (₹ per share) | P/E Ratio | RoNW (%) | PAT Margin (%) | Market Cap to Revenue from Operations |
Functional & Innovative Foods Limited | Standalone | 10 | 5,389.07 | 11.44 | 11.44 | 40.47 | [ • ] | 28.27 | 15.35 | [ • ] |
Dynemic Products Limited | Standalone | 10 | 37,171.37 | 16.04 | 16.04 | 195.68 | 11.91 | 8.35 | 5.46 | 0.64 |
Vidhi Specialty Food Ingredients Limited | Standalone | 1 | 38,002.62 | 9.80 | 9.80 | 65.88 | 27.78 | 14.94 | 12.93 | 3.59 |
Strengths and Opportunities of Functional & Innovative Foods IPO
Long-standing supply relationships with emerging D2C brands, institutional buyers, and established multinational FMCG companies. As of December 31, 2025, 33 repeat customers accounted for 34.31% of revenue from operations
Comprehensive offerings across more than 25 product categories and over 700 SKUs, covering ready-to-eat (RTE), ready-to-cook (RTC), protein staples/pulses, spices, sugar alternatives, pre-mixes, and breakfast cereals.
Operates four manufacturing units comprising nine facilities across Tamil Nadu with total effective installed capacity expanding from 24,406.20 tonnes in FY2023 to 42,620.76 tonnes in FY2025. Capacity utilisation stood at 90.95% during the nine months ended December 31, 2025.
Robust food safety management certified under ISO 22000:2018 and FSSAI regulations, supported by a dedicated in-house quality assurance and quality control team of 21 professionals.
In addition to contract manufacturing, the company captures retail value through branded consumer sales via its flagship "NALAAS" brand (operated under subsidiary CQFIPL), backed by an active network of 450 distributors.
Increasing trend among FMCG players and rapid-scale D2C brands to outsource complex manufacturing, recipe development, and packaging to specialised, certified contract manufacturers.
Capitalising on the consumer pivot toward functional nutrition, whole-grain wellness, and micro-nutrient fortification through the planned 3,000 TPA Proposed Unit-V facility in Namakkal, Tamil Nadu.
Expanding distribution and production of high-velocity convenience formats (pre-mixes, breakfast bowls, and healthy snacks) tailored to urban online grocery and quick-delivery platforms.
Risks and Threats of Functional & Innovative Foods IPO
The company derived 60.36%, 69.75%, 54.39%, and 46.24% of its revenue from operations from its top 10 customers in 9M FY26, FY25, FY24, and FY23, respectively, without entering into long-term supply agreements. The loss of any major client, significant reductions in order volumes, or client insolvencies could cause severe revenue declines, elevated bad-debt write-offs, and disrupted working capital cycles.
Primary raw materials—including staples such as soya, wheat, millets, and functional ingredients—are subject to seasonal swings, crop yields, and spot-price fluctuations, with no long-term fixed-price supplier contracts. An inability to pass raw material price surges onto clients in a timely or complete manner could lead to operating margin contraction, reduced profitability, and negative cash flows.
South India accounted for 86.12% of revenue from operations in 9M FY26 (87.58% in FY25), and all four existing manufacturing units (spanning nine facilities) are concentrated within Tiruchengode and Erode, Tamil Nadu. Any localized disruptions—such as natural disasters, regional labor unrest, environmental actions, or power/water outages—could halt all manufacturing activities simultaneously, halting order fulfillment and damaging brand relationships
The proposed Unit-V at Namakkal involves scaling commercial production of sprouted and fortified products, an area in which the company has limited operating history
The original Consent to Establish (CTE) for the Unit-I leased premises is non-traceable, and Unit-II was granted a Consent to Operate (CTO) without a prior distinct CTE. Regulatory authorities could take adverse views, demand corrective measures, issue penalties, or restrict operations, resulting in business disruption and legal liabilities.
The statutory auditors issued an adverse remark on the Restated Consolidated Financial Information because the audit trail (edit log) feature was not enabled in the accounting software during the period. This deficiency may diminish investor confidence in the integrity of historical accounts, harm reputation, and raise compliance scrutiny under the Companies Act.
Functional & Innovative Foods IPO Reservation
Investor Category | Shares Offered |
QIB Shares Offered | Not more than 50% of the Net Issue |
NII Shares Offered | Not less than 15% of the Net Issue |
Retail Shares Offered | Not less than 35% of the Net Issue |
Functional & Innovative Foods IPO Promoter Holding
The promoter of the company is Senthil Kumar Chinnusamy.
Share Holding Pre-Issue | NA |
Share Holding Post Issue | - |
Functional & Innovative Foods IPO Prospectus
Functional & Innovative Foods IPO Registrar and Lead Managers
Functional & Innovative Foods IPO Lead Managers
Beeline Capital Advisors Private Limited
Registrar for Functional & Innovative Foods IPO
KFin Technologies Limited
Contact Number: +91 40 6716 2222 /1800 309 4001
Email Address: functional.ipo@kfintech.com
How To Apply for Functional & Innovative Foods IPO Online?
Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
Locate the IPO Section: Navigate to the 'IPO' section on the platform.
Select IPO: Find and select the Functional & Innovative Foods IPO from the list of open IPOs.
Enter the Lot Size: Specify the number of lots you want to bid for.
Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of the Functional & Innovative Foods IPO?
Steps to check IPO allotment status on Angel One’s app:
Log in to the Angel One app.
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.
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Contact Details of Functional & Innovative Foods IPO
Registered Office: 1/374A Andipalayam Village Andipalayam Post, Tiruchengode, Namakkal, Tamil Nadu, India, 637214
Phone: 04288-252544
- How to Apply in IPO
- How to Check IPO Allotment Status
Login to Angel One App / Website & click on IPO
Select desired IPO & tap on "Apply"
Enter UPI ID, set quantity/price & submit
Accept mandate on the UPI app to complete the process
Functional & Innovative Foods IPO FAQs
What minimum lot size can retail investors subscribe to?
The minimum lot size for the Functional & Innovative Foods IPO has not yet been announced.
When will the Functional & Innovative Foods IPO be allotted?
The basis of allotment date for the Functional & Innovative Foods IPO has not yet been announced.
How to increase your chances of getting a Functional & Innovative Foods IPO allotment?
Multiple Submissions: Use different Demat accounts belonging to different eligible applicants to make separate applications.
Price Bidding: Opt for bidding at the cut-off price or the upper price band to avoid the application being rejected due to a lower bid.
Timely Subscription: Ensure you submit your IPO application within the specified subscription period and complete the required application process before the deadline.
Application Details: Check your PAN, Demat account, bank account and UPI details carefully before submitting the application to avoid rejection due to errors.
How do I approve the UPI mandate request for the Functional & Innovative Foods IPO?
After submitting your IPO application, you will receive a UPI mandate request in your chosen UPI app. Review the details and approve the mandate before the specified deadline to complete your application.
Can I submit more than one application for the public issue of Functional & Innovative Foods Limited using one PAN?
No, you should not submit multiple IPO applications using the same PAN under the same investor category. Multiple applications with the same PAN may be rejected as invalid during the allotment process.
What is 'pre-apply' for Functional & Innovative Foods Limited IPO?
Pre-apply allows investors to submit their IPO application before the public issue officially opens for subscription. The application is saved in advance and is processed when the IPO opens.
If I pre-apply for the Functional & Innovative Foods Limited IPO, when will my order get placed?
The IPO opening date for Functional & Innovative Foods Limited has not yet been announced. Thus, the order placement date cannot be specified.
When will I know if my Functional & Innovative Foods Limited IPO order is placed?
You will receive a confirmation once your IPO order has been successfully placed on the exchange. You will also receive notifications through your email and SMS.
Where is the Functional & Innovative Foods Limited IPO getting listed?
The Functional & Innovative Foods Limited IPO is proposed to be listed on the NSE and BSE platforms. The listing date has not yet been announced.
