Shares of prominent basmati rice exporters faced selling pressure on Monday following Trump's announcement of a 25% tariff on countries maintaining commercial ties with Iran. The move has created uncertainty for Indian rice exporters despite the country's limited direct trade exposure to Iran.

Stock Performance Impact

The tariff announcement had an immediate impact on rice exporter stocks during Monday's trading session:

LT Foods and other major exporters saw investor concerns mount over potential indirect impacts on their overseas operations, particularly in key markets where they have established presence.

Market Exposure and Revenue Streams

KRBL's financial performance highlights the significance of international markets for Indian basmati rice exporters. The company reported substantial export revenue in FY25:

Key markets for KRBL in the Middle East include Saudi Arabia, the UAE, Kuwait, and Qatar. The Middle East region represents a critical revenue source, with the company deriving around 61% of its basmati export revenue from this geography.

Industry Growth Prospects

Despite current concerns, LT Foods has previously emphasized India's dominant position in global rice markets. The company highlighted that India serves as the world's largest rice exporter, with rising global demand for basmati and specialty rice varieties creating substantial growth opportunities.

Demand drivers across key regions include:

• North America and Europe: Growing consumption among mainstream consumers and diverse ethnic communities
• Gulf Region: Strong demand for aromatic rice varieties
• Product Innovation: Increasing preference for convenient food products, including pre-cooked rice and Daawat biryani kits

Tariff Details and Implementation

Trump announced the tariff measures through a post on Truth Social, stating that any country conducting business with Iran would face a 25% tariff on all trade with the United States. The tariff became effective immediately, though specific details about what constitutes "doing business" with Iran remain unclear.

China leads Iran's trading partners, followed by Iraq, the United Arab Emirates, Turkey, and India. The White House has not yet provided comprehensive details regarding the scope of the tariffs or identified which countries or sectors might face the most significant impact.

Market Outlook

While India's overall trade exposure to Iran remains limited and largely concentrated in products such as basmati rice, the development has created uncertainty among investors regarding potential indirect effects on exporters with meaningful presence in overseas markets. The rice export industry continues to monitor developments as companies assess potential implications for their international operations.

Bandhan Mutual Fund has disclosed a substantial acquisition of shares in lt foods , increasing its total shareholding to 5.0213% of the company's paid-up capital. The acquisition was completed through open market purchases on January 09, 2026, triggering disclosure requirements under SEBI regulations.

Transaction Details

The mutual fund acquired 93,006 equity shares representing 0.0268% of LT Foods' total share capital through open market transactions. This acquisition increased Bandhan Mutual Fund's total holding from 1,73,43,528 shares to 1,74,36,534 shares.

Scheme-wise Distribution

The shareholding is distributed across multiple Bandhan Mutual Fund schemes, with Bandhan Small Cap Fund holding the largest portion. The scheme-wise breakdown shows concentrated exposure through the small cap and focused fund strategies.

Company Capital Structure

LT Foods Limited maintains an equity share capital of ₹34,72,52,944, comprising 34,72,52,944 equity shares of face value ₹1.00 each, fully paid up. The company's shares are listed on both BSE Limited and National Stock Exchange of India Limited. The capital structure remained unchanged following this acquisition.

Regulatory Compliance

The disclosure was made under Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Bandhan AMC Limited, as the investment manager of Bandhan Mutual Fund, confirmed that the fund does not belong to the promoter or promoter group of LT Foods Limited. The acquisition represents a strategic investment decision across the fund's various investment schemes, with no encumbrances, pledges, or non-disposal undertakings associated with the shareholding.