Krishival Foods has approved the acquisition of additional equity shares in its ice cream subsidiary, Melt 'N' Mellow Foods Private Limited, increasing its stake from 52.94% to 54.90%.

The Board of Directors, meeting on August 26, 2026, sanctioned the transaction with an aggregate consideration of up to ₹35 crore. The investment will be funded through a combination of cash proceeds from the company's recent rights issue and the conversion of existing loans extended to the subsidiary into equity shares.

Transaction Details

The move aims to strengthen Krishival Foods' presence in the food products segment by enhancing operational, sales, and distribution synergies between the parent company and its subsidiary. The acquisition is classified as a related-party transaction since Melt 'N' Mellow is an existing subsidiary. The company stated the deal will be undertaken on an arm's length basis in compliance with applicable provisions.

No governmental or regulatory approvals are required for this specific acquisition. The company expects to complete the transaction on or before September 30, 2026, subject to necessary formalities.

Subsidiary Financials

Melt 'N' Mellow Foods Private Limited, incorporated in 2019, operates in the ice cream, milk products, and bakery products sector. The subsidiary has shown consistent revenue growth over the past three fiscal years.

What the Numbers Show

The subsidiary's turnover nearly doubled from ₹49.94 crore in FY25 to ₹90.22 crore in FY26, indicating strong top-line momentum ahead of this capital infusion. By converting existing debt into equity alongside fresh rights issue capital, Krishival Foods is likely optimizing the subsidiary's balance sheet while consolidating control without immediate cash outflow pressure beyond the rights proceeds.

Krishival Foods has scheduled a meeting of its Board of Directors for Wednesday, September 2, 2026. The session will focus on approving the annual financial statements and corporate governance reports for the fiscal year ended March 31, 2026.

Agenda Highlights

The board will address several key administrative and compliance matters during the meeting. Key agenda items include:

• Re-appointment of Sunil Kumar Agarwal as a Non-Executive Independent Director, subject to member approval at the ensuing General Meeting.
• Approval of related party transactions.
• Finalization of the Director’s Report, Corporate Governance Report, and Management Discussion and Analysis for FY26.

AGM and Dividend Procedures

The board will also fix the dates for book closure and the record date for dividend declaration. Additionally, the company will decide on the time, venue, and date for its Annual General Meeting (AGM). A scrutinizer will be appointed to oversee the AGM process.

Trading Window Closure

In compliance with insider trading regulations, the trading window for designated persons and their immediate relatives remains closed. This restriction is effective from Tuesday, August 25, 2026, until 48 hours after the announcement of the board meeting’s outcome.