Functional & Innovative Foods Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) of up to 8.5 million equity shares, according to livemint.com. The company plans to use the proceeds to fund new manufacturing facilities, repay borrowings, and support its subsidiary, Christy Quality Foods.
The integrated food contract manufacturing company offers a diversified product portfolio catering to businesses ranging from emerging brands to multinational FMCG companies. The filing with SEBI marks a key step in the company’s plan to expand its operations and strengthen its financial position. The DRHP outlines the intended use of funds and provides details about the company’s business model and market presence.
This IPO filing comes amid growing investor interest in the food manufacturing sector in India, where contract manufacturing is gaining traction due to rising demand for packaged and functional foods. Functional & Innovative Foods’ diversified product range and client base position it to capitalize on this trend. The move to raise capital through an IPO aligns with similar listings by other food sector companies aiming to scale operations and enhance market reach.
The next procedural step involves SEBI’s review and approval of the DRHP, after which the company will set the IPO price band and launch the public offering. The filing date is July 2, 2026, as per livemint.com, marking the start of the company’s journey toward becoming a publicly traded entity.