KRISHIVALNSEKrishival Foods LimitedMediumNeutral
Announced Wed, 8 Jul · 16:52 IST

Board approves Rs 15 crore corporate guarantee for subsidiary

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KRISHIVAL · price

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AI summary

Krishival Foods board approved a corporate guarantee up to Rs 15 crore for its subsidiary Melt N Mellow Foods, which operates in ice cream, milk and bakery products. The guarantee supports lease buyback of deep freezers over 48 months. Subsidiary turnover grew from Rs 37.28 crore in FY24 to Rs 90.22 crore in FY26. No immediate cash outflow for the parent unless the guarantee is invoked. It is a related party transaction as promoter director Aparna Bangar also sits on the subsidiary board.

Likely market impact

Supports subsidiary expansion via leasing with no immediate cash outflow, but creates a contingent liability of Rs 15 crore for the parent.