Supreme Court order leads to Patanjali Foods share decline

Patanjali Foods share falls:  Shares of Patanjali Foods Limited dropped as much as 3.91 per cent to hit an intraday low of Rs 1,556.80 per share. The decline comes following a Supreme Court decision that barred Patanjali Ayurved Limited from promoting its products with claims of curing diseases until further notice.

In an exchange filing, the company said, “This refers to the latest observations of the Hon’ble Supreme Court of India, relating to the advertisements of ayurvedic medicines of Patanjali Ayurved Limited: The observations of Hon’ble Supreme Court of India do not relate to Patanjali Foods Limited (PFL) which is an independent listed entity and operates in the space of edible oil and food FMCG products only.”

The Supreme Court's scrutiny extended to the entire country's concerns regarding the issue, prompting notices to be sent to Patanjali Ayurved Limited's MD Acharya Balkrishna, questioning why contempt proceedings should not be initiated against the company.

Despite the Supreme Court's observations on its sister company, Patanjali Foods reassured in its exchange filing that its business and financial operations remain unaffected.

Notably, the shares climbed 71.24 per cent in 2023.

At 10:35 am, the company's shares were trading 1.87 per cent lower at Rs 1,589.85 per share.