Krishival Foods Ltd Provides Corporate Guarantee of Rs 15 Crore for Subsidiary's Equipment Leasing Needs
Krishival Foods Limited has approved a corporate guarantee amounting up to Rs 15,00,00,000 in aggregate. This guarantee is in favor of National Business Finance Corporations (NBFCs) and Financial Institutions to support the lease buy back facilities required by its subsidiary, Melt N Mellow Foods Private Limited, for leasing deep freezers necessary for its business operations.The corporate guarantee aims to support the business expansion and operational requirements of the subsidiary within the ice cream, milk products, and bakery products industry. The indicative timeframe for the completion of this transaction is set at 48 months, based on the understanding between the parent company and the equipment leasing provider.
Melt N Mellow Foods Private Limited, which operates as an integral part of Krishival Foods Ltd's business, is engaged in the ice cream, milk products, and bakery products industry. The guarantee relates to a non-fund based support provided by Krishival Foods Limited to the equipment leasing company in favor of Melt N Mellow Foods Private Limited for the lease buy back of deep freezers.
The details regarding the transaction and the subsidiary are summarized below:
| Aspect | Details |
|---|---|
| Entity Receiving Equipment | Melt 'N' Mellow Foods Private Limited (Subsidiary - Ice Cream Division) |
| Nature of Guarantee | Corporate guarantee for lease buy back facilities |
| Aggregate Guarantee Amount | Rs 15,00,00,000 |
| Purpose of Guarantee | Lease buy back of deep freezers to meet business/operational requirements |
| Tenure | Within a period of 48 months |
| Nature of Relationship | Subsidiary Company and Related Party Transaction |
Melt N Mellow Foods Background and Financial Standing
Melt N Mellow Foods Private Limited was acquired on September 16, 2024, and is established in India. The company has demonstrated consistent growth across the last three financial years, achieving audited turnover levels as follows:| Fiscal Year | Audited Turnover (Rs) |
|---|---|
| 2025-26 | Rs 90,22,03,793 |
| 2024-25 | Rs 49,93,63,931 |
| 2023-24 | Rs 37,28,05,408 |
The transaction has been classified as a Related Party Transaction (RPT) because Ms. Aparna Bangar, who is the Promoter Director of Krishival Foods Limited, also serves as a Director and Shareholder in Melt N Mellow Foods Private Limited. The company confirmed that there are no immediate cash outflows anticipated from Krishival Foods Limited, except upon invocation of the corporate guarantee.
KRISHIVAL Stock Price Movement
Krishival Foods Limited shares slipped today to close at ₹399.40, shedding ₹4.95 or 1.22% after trading in post-market sessions. The stock experienced limited volatility throughout the day, charting between a high of ₹404.05 and a low of ₹398.20 on a volume of 6,918 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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