Foodlink F&B Holdings files DRHP with SEBI for raising funds via IPO

Mumbai, June 28, 2025 — Premium food and beverage company Foodlink F&B Holdings India Limited has taken a significant step towards going public by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is seeking to raise funds through an initial public offering (IPO) aimed at supporting its expansion plans, consolidating operations, and strengthening brand presence in both domestic and international markets.

IPO Details and Fund Utilisation

According to the DRHP filed with SEBI, the IPO comprises a fresh issue of equity shares worth ₹600 crore and an Offer for Sale (OFS) by existing shareholders, including early-stage investors and promoters. While the exact size of the OFS is yet to be disclosed, sources familiar with the matter suggest it could amount to an additional ₹300 crore.

The company has outlined several key uses for the IPO proceeds, including:

• Setting up new premium restaurants and cloud kitchens

• Enhancing technological infrastructure and supply chain

• Repayment or prepayment of certain borrowings

• General corporate purposes

“This IPO marks a pivotal chapter in Foodlink’s journey from a niche luxury catering brand to a diversified F&B player with global footprints. The funds will significantly augment our growth trajectory and bring operational synergies,” said Sanjay Vazirani, Founder and CEO of Foodlink F&B Holdings.

Foodlink’s Business Model and Global Footprint

Founded in 2003, Foodlink has carved a niche in the luxury catering and fine-dining segment, offering bespoke culinary experiences for high-profile weddings, corporate events, and elite gatherings. Over the past two decades, it has diversified into restaurant chains and cloud kitchens, with prominent brands such as Art of Dum, India Bistro, and Glocal Junction under its umbrella.

With operations spanning across India, UAE, and the UK, the company reported a consolidated revenue of ₹325 crore for FY24, reflecting a 40% YoY growth. The EBITDA margin stood at approximately 18.5%, bolstered by strong performance in catering and international business segments.

Analyst Take: Strong Niche, But Execution Critical

Market analysts view Foodlink's IPO as a strategic move to capitalize on India’s burgeoning premium dining and event catering market, which is projected to grow at a CAGR of 15% over the next five years. The company’s hybrid revenue streams—catering, dine-in restaurants, and delivery kitchens—offer a cushion against seasonal fluctuations.

However, some analysts advise caution.

“While Foodlink enjoys strong brand equity and margins in the luxury segment, scaling a service-heavy model is capital-intensive and fraught with operational challenges. Investors should watch execution timelines and cost controls closely,” said Rashi Verma, an analyst at ICICI Securities.

Others point to the company's successful foray into cloud kitchens as a strength.

“With rising urban affluence and demand for premium food experiences, Foodlink’s asset-light expansion via cloud kitchens could become a game-changer,” said Kunal Tiwari, Head of Research at Motilal Oswal.

Market Context: Appetite for F&B Listings Remains Strong

Foodlink’s IPO plans come at a time when India’s food and beverage sector is witnessing robust investor interest, buoyed by post-pandemic recovery, rising disposable income, and a growing preference for gourmet and health-conscious offerings.

In 2024 alone, companies like Barbeque Nation, Rebel Foods, and Wow! Momo attracted institutional funding or debuted on the public market, seeing enthusiastic participation from both retail and HNI investors.

The Nifty FMCG and Consumer Services indices have outperformed broader benchmarks in the past 12 months, underlining the market’s positive sentiment towards consumer-facing businesses.

Investor Outlook: High-Reward, Medium-Risk Play

For investors, Foodlink’s IPO offers an opportunity to participate in a premium brand’s growth story at a relatively early stage of its public market lifecycle. Its brand visibility, celebrity clientele, and event-based revenue model offer compelling value, especially in the post-COVID boom of weddings and lifestyle events.

However, prospective investors should be mindful of:

• Volatility in luxury event demand

• High dependency on a few verticals and regions

• Execution risk in new geographies and formats

Overall, brokerage houses are expected to initiate coverage post the final RHP and valuation band disclosures. Grey market activity, if any, will also provide cues in the coming weeks.

What’s Next?

SEBI’s approval process typically takes 2–3 months, following which Foodlink is likely to kick off roadshows and price discovery. If market conditions remain favorable, the IPO is expected to launch in Q3 FY26.

For now, all eyes are on SEBI’s response and subsequent amendments, if any, to the DRHP.