Krishival Foods Secures ₹100 Crore Via Rights Issue for Expansion
Overview
Krishival Foods Limited successfully closed its Rs 100 crore rights issue, allotting over 3.3 million shares. Funds will fuel expansion, including a new nut processing unit in Kolhapur, and bolster working capital. This capital raise underscores shareholder confidence in the FMCG firm's growth trajectory.
Krishival Foods Limited, a prominent player in the premium nuts, dried fruits, and ice cream segment, has successfully concluded its Rights Issue, raising approximately Rs 100 crore. The company's Rights Issue Committee approved the allotment of 3,333,160 partly paid-up equity shares on January 8, 2026, following the issue period from December 26, 2025, to January 7, 2026.
The capital infusion is strategically earmarked for significant expansion projects. A substantial portion will fund a new processing and packaging unit for nuts located in Kolhapur, Maharashtra. The remaining capital will support the company's working capital needs and general corporate objectives. Management views the issue's success as a strong endorsement of Krishival Foods' growth strategy by its shareholders.
This rights issue brings the company's total capital structure to 22,295,141 fully paid-up shares, augmented by the newly listed partly paid-up equity shares. These new shares have been admitted for trading on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Krishival Foods reported robust performance in the second quarter of fiscal year 2026, with revenue climbing 50% year-on-year to Rs 66.67 crore. This growth was propelled by its two key brands, Krishival Nuts and Melt N Mellow ice cream. The company plans to quadruple its nut processing capacity and targets significant revenue growth by FY27-28, supported by an extensive distribution network.
Strategic Expansion Fuels Growth
The primary goal of the capital raise is to finance a new processing and packaging facility in Kolhapur, Maharashtra, dedicated to nuts. This expansion is expected to enhance operational efficiency and capacity for Krishival Foods' premium nut offerings.
Shareholder Confidence and Financials
The successful completion of the Rs 100 crore rights issue reinforces investor confidence in Krishival Foods' strategic direction within the competitive FMCG market. The company also reported a 26% rise in EBITDA for Q2FY26 and is pursuing a target of triple-digit revenue growth by FY27-28.
