Krishival Foods Limited announced the outcome of its Board of Directors meeting held on Wednesday, August 26, 2026, which commenced at 04:00 PM and concluded at 04:30 PM.

The Board considered and approved the partial utilisation of funds received from the proceeds of the Rights Issue towards investment in the ice cream division. This investment will be made by way of acquisition of additional equity shares of Melt 'N' Mellow Foods Private Limited, a subsidiary of the Company.

The specific approval was for the acquisition of additional equity shares of Melt 'N' Mellow Foods Private Limited, which will increase the Company's shareholding from the existing 52.94% to 54.90% of the total paid-up equity share capital.

Transaction Details

  • Nature of Entity Being Acquired: Melt 'N' Mellow Foods Private Limited is an existing subsidiary of the Company and is a related party.
  • Industry: Ice cream, milk products and bakery products.
  • Purpose and Impact: The acquisition is intended to increase the Company's existing shareholding in its subsidiary. The investment is expected to strengthen the Company's presence in the food products segment and enable greater operational, sales and distribution synergies between the businesses.
  • Governmental/Regulatory Approvals: None required.
  • Completion Timeline: The acquisition is expected to be completed on or before September 30, 2026, subject to completion of necessary formalities.
  • Consideration Structure: The consideration shall comprise cash subscription out of the proceeds of the Rights Issue and conversion of the existing loan extended by the Company to Melt 'N' Mellow Foods Private Limited into equity shares.
  • Total Cost of Acquisition: The aggregate consideration is up to ₹35 Crore.
  • Resulting Shareholding: The Company's shareholding will increase from 52.94% to 54.90%.
  • Related Party Transaction: The transaction is with a related party but will be undertaken on an arm's length basis.

Background on Target Entity

Melt 'N' Mellow Foods Private Limited was incorporated in 2019 under the Companies Act 2013 and is in the business of ice cream, milk products and bakery products in India. Its audited turnover for the last three years is as follows:

  • FY 2025-26: ₹90,22,03,793
  • FY 2024-25: ₹49,93,62,931
  • FY 2023-24: ₹37,28,05,408

The disclosure is made pursuant to Regulation 30 of the SEBI LODR Regulations, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. It has also been made available on the Company's website as required under Regulation 30(8).

The announcement was signed by Rahul Suresh Gawande, Company Secretary and Compliance Officer, on August 26, 2026.