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Patanjali Foods sheds 5% on SC notice to promoter firm for misleading advts

The Supreme Court on Tuesday issued a contempt notice to Patanjali Ayurved and its MD Acharya Balakrishna for flouting earlier orders by continuing to propagate misleading claims via advertisements.

Patanjali

SI Reporter Mumbai

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Shares of Patanjali Foods plunged 5 per cent to Rs 1,536 in intra-day trades on Wednesday, a day after the Supreme Court issued a contempt notice to Pantanjali Ayurved and its managing director Acharya Balakrishna for flouting earlier orders.

At 1:50 pm; the stock quoted 4 per cent lower at Rs 1,558. The counter had seen trades of around 46,000 shares as against its two-week average volume of around 32,000 shares on the BSE. Meanwhile, the S&P BSE Sensex was down 0.7 per cent (500 points) at 72,575.

The Supreme Court on Tuesday issued a contempt notice to the promoter firm for continuing to propagate false and misleading claims about curing diseases with the company’s products.

While passing the order, the apex court banned Patanjali advertisements and it came down heavily on the Central government saying it was “sitting with eyes closed’’ as the entire country was “taken for a ride’’. 

“How can you claim permanent relief,” the court asked while reprimanding Patanjali Ayurved on its advertisements. In November 2023, the company had told the court that no such claims would be made in its advertisements in future. READ MORE

Patanjali Ayurved holds 32 per cent stake in Patanjali Foods. Overall Patanjali Group holds 74 per cent stake in the food company.

For the quarter ended December 2023, Patanjali Foods reported 19.5 per cent dip in net profit at Rs 216.54 crore as against Rs 269.19 crore posted a year ago. Total income was down marginally at Rs 7,957 crore.

 

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First Published: Feb 28 2024 | 2:13 PM IST

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