Patanjali Foods shares fell over 3 percent; despite 'no threat' assurance following SC crackdown on Patanjali Ayurved
An apex court bench had issued a show-cause notice to Patanjali Ayurved, co-founded by yoga guru Ramdev, and managing director Balakrishna for going back on their promise to not make "misleading claims" in advertisements for its medicines.
Shares of Patanjali Foods Ltd fell over 3 percent in early trade on February 28, despite the company clarifying through an exchange filing on February 27 that the Supreme Court's observation of "misleading advertisements" over some of the products sold by Patanjali Ayurved Ltd will not affect its business as it is a separate listed entity, as per a Moneycontrol report.
Shares of Patanjali Foods have gained over 3 percent in a month and nearly 30 percent in six months. At 9.23am, shares of Patanjali Foods traded 2.5 percent lower at Rs 1581.80, marking its third day of decline, the report further stated.
"The observations do not have any bearing on the regular business operations or the financial performance of Patanjali Foods," the company informed exchanges.
An apex court bench had issued a show-cause notice to Patanjali Ayurved, co-founded by yoga guru Ramdev, and managing director Balakrishna for going back on their promise to not make "misleading claims" in advertisements for its medicines.
In November 2023, the Supreme Court reprimanded Patanjali Ayurved for continuing to publish misleading claims and advertisements against modern medicine.
The Supreme Court was hearing a writ petition filed by the Indian Medical Association (IMA) over misleading advertisements by certain companies.
Following this, the court directed Patanjali Ayurved to not publish misleading advertisements in the future and also to not make any casual statements about it in the press.
In December quarter, Patanjali Foods' standalone net profit declined to Rs 216.54 crore from Rs 254.54 crore in the September quarter. The company saw its revenue from operations rise to Rs 7,910.70 crore in the December quarter from Rs 7,821.89 crore in the quarter ago period.
