Krishival Foods approves Rs 15 crore guarantee for subsidiary
Krishival Foods approved a Rs 15 crore corporate guarantee for NBFCs and financial institutions to facilitate lease buy-back facilities for its subsidiary, Melt N Mellow Foods Private Limited. The transaction, classified as a related party transaction, aims to support the subsidiary's business expansion in the ice cream and bakery sector. The subsidiary's turnover has grown from Rs 37.28 crore in FY24 to Rs 90.22 crore in FY26.
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Krishival Foods has approved a corporate guarantee of up to Rs 15 crore in favor of NBFCs and financial institutions to facilitate lease buy-back facilities for its subsidiary, Melt N Mellow Foods Private Limited. The guarantee will support the subsidiary in leasing deep freezers essential for its business operations. This decision was taken during a board meeting held on July 8, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The approved guarantee amount is Rs 15,00,00,000 (Rupees Fifteen Crore only). The transaction is classified as a related party transaction because Ms. Aparna Bangar, Promoter Director of Krishival Foods, is also a Director and Shareholder in Melt N Mellow Foods Private Limited. The tenure for the transaction is set within a period of 48 months or as per the understanding between the subsidiary and the equipment leasing company.
Melt N Mellow Foods Private Limited, acquired on September 16, 2024, operates in the ice cream, milk products, and bakery products sector. The subsidiary has reported a steady increase in turnover over the last three years. The corporate guarantee is intended to support the business expansion and operational requirements of the subsidiary without any immediate cash outflow from Krishival Foods, except in the event of invocation of the guarantee.
The following table outlines the key details of the approved corporate guarantee and the subsidiary's financial performance:
| Particulars | Details |
|---|---|
| Purpose | Leasing of deep freezers |
| Beneficiary | Melt N Mellow Foods Private Limited |
| Guarantee Amount | Rs 15 crore |
| Tenure | 48 months |
| Related Party | Yes (Ms. Aparna Bangar) |
| Subsidiary Turnover (2025-26) | Rs 90,22,03,793 |
| Subsidiary Turnover (2024-25) | Rs 49,93,63,931 |
| Subsidiary Turnover (2023-24) | Rs 37,28,05,408 |
The disclosure was signed by Rahul Gawande, Company Secretary and Compliance Officer, and submitted to the National Stock Exchange of India Limited and BSE Limited. The board meeting commenced at 02:00 PM and concluded at 04:15 PM on July 8, 2026.
Historical Stock Returns for Krishival Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.24% | -2.81% | -4.24% | +20.34% | +3.39% | +822.40% |
How will the acquisition of deep freezers impact Melt N Mellow's distribution reach and market penetration over the next four years?
What is the projected ROI for the Rs 15 crore lease facility given the subsidiary's recent turnover growth trajectory?
Does Krishival Foods plan to provide similar corporate guarantees for future capital expenditures of other subsidiaries?
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