Functional & Innovative Foods has received the Securities and Exchange Board of India’s (SEBI) approval to raise funds through initial public offering (IPO). The company’s proposed IPO is a combination of a fresh issue of up to 60 lakh equity shares and an OFS of up to 25 lakh equity shares by promoter Senthil Kumar Chinnusamy.
The company proposes to utilise the proceeds from the fresh issue to fund capital expenditure for setting up two new manufacturing units at Namakkal in Tamil Nadu and Dhar in Madhya Pradesh. Also, the funds will be used for repayment or prepayment of certain outstanding borrowings of the company and its wholly-owned subsidiary Christy Quality Foods (India), besides meeting long-term working capital requirements and general corporate purposes.
Functional & Innovative Foods is an integrated food contract manufacturer with a portfolio spanning ready-to-eat (RTE) and ready-to-cook (RTC) products, staples, sugar alternatives, spices and other food products.