Krishival Foods lends ₹25 crore to Melt 'N' Mellow for cold chain expansion
- Krishival Foods approves ₹25 crore loan to Melt 'N' Mellow for 10,000 deep freezers
- Board provides ₹35 crore corporate guarantee for subsidiary's credit facilities
- Melt 'N' Mellow turnover nearly doubles to ₹90.22 crore in FY26 from ₹49.94 crore in FY25
- Dividend record date set for September 21, 2026 with AGM scheduled for September 28
*this image is generated using AI for illustrative purposes only.
Krishival Foods has approved a ₹25 crore loan to its subsidiary Melt 'N' Mellow Foods Private Limited to strengthen its ice cream division’s cold chain infrastructure. The board also sanctioned a ₹35 crore corporate guarantee and fixed September 21, 2026 as the dividend record date.
The strategic move replaces a previously proposed equity acquisition of the subsidiary. Instead of buying additional shares, Krishival will deploy funds from its recent rights issue to provide debt financing for operational expansion.
Strategic Shift in Subsidiary Financing
The board decided not to proceed with the acquisition of additional equity shares in Melt 'N' Mellow, which had been proposed on August 26, 2026. In its place, the company approved two distinct financial commitments:
- ₹25 crore loan: Utilized for deploying 10,000 additional deep freezers to enhance cold chain capabilities.
- ₹10 crore loan: Approved subject to member consent for future working capital requirements.
Additionally, Krishival provided a corporate guarantee of up to ₹35 crore to lenders for credit facilities availed by the subsidiary. This transaction is classified as a related party transaction because promoter director Ms. Aparna Bangar holds shares and serves as a director in Melt 'N' Mellow.
What the Numbers Show
Melt 'N' Mellow’s turnover data reveals significant growth momentum since its acquisition by Krishival in September 2024. The subsidiary’s turnover rose from ₹37.28 crore in FY24 to ₹49.94 crore in FY25, and further accelerated to ₹90.22 crore in FY26. This near-doubling of revenue in FY26 underscores the scale of operations that the new cold chain investment aims to support.
| Fiscal Year | Turnover |
|---|---|
| 2023-24 | ₹37.28 crore |
| 2024-25 | ₹49.94 crore |
| 2025-26 | ₹90.22 crore |
The loan carries an interest rate of 12% and may be converted into equity shares in future tranches. The funds are intended to meet working capital requirements within a 12-month completion period.
Corporate Governance and Shareholder Updates
The board re-appointed Mr. Sunil Kumar Agarwal as a Non-Executive Independent Director for a second five-year term, effective October 1, 2026. His tenure will end on September 30, 2031, pending shareholder approval via special resolution.
Key dates for shareholders include:
- Dividend Record Date: Monday, September 21, 2026
- Register Closure: Tuesday, September 22, 2026 to Thursday, September 24, 2026
- E-Voting Period: Friday, September 25, 2026 at 10:00 am to Sunday, September 27, 2026 at 5:00 pm
- AGM Date: Monday, September 28, 2026 at 4:00 pm via Video Conferencing
The trading window for designated persons opens on Friday, September 4, 2026, pursuant to SEBI insider trading regulations.
Historical Stock Returns for Krishival Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.24% | +1.01% | +4.27% | +31.00% | -4.19% | 0.0% |
How will the 12% interest cost on the ₹25 crore loan impact Krishival Foods' net margins compared to the previous equity acquisition strategy?
What is the projected ROI timeline for deploying 10,000 additional deep freezers to support the subsidiary's near-doubled FY26 revenue?
Could the conversion option of the debt into equity shares dilute existing shareholders' stakes in the future, and under what conditions might this trigger?
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