Adversitement
Patanjali Foods Shares Drop 4% After SC Issues Notices to Ramdev, Balakrishnan
Published On : 2024-02-28T16:31:19+0530 [ IST ] |
Author : Mayur_Tembhare
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Patanjali Foods Shares Drop 4% After SC Issues Notices to Ramdev, Balakrishnan
India / New Delhi :
Shares of FMCG player Patanjali Foods fell 4% on Wednesday to a day's low of Rs 1,555.55 on the NSE following the Supreme Court's issuance of notices to Baba Ramdev and Acharya Balakrishnan. The court sought explanations on why contempt proceedings should not be initiated against them for violating its orders. Patanjali Ayurved has been restrained from advertising and marketing products meant to cure ailments and disorders until further notice.
However, Patanjali Foods clarified in a regulatory filing that the SC order does not pertain to Patanjali Foods Limited (PFL), an independent listed entity operating solely in the edible oil and food FMCG products sector. The company stated that the court's observations do not impact its regular business operations or financial performance.
The SC's order follows an ongoing legal dispute with the Indian Medical Association (IMA), which has accused Patanjali of disparaging other forms of conventional medicines. The court noted that Patanjali had violated its earlier assurance to refrain from publishing advertisements making casual statements about medicinal efficacy.
Ramdev previously denied the criticism, alleging that some doctors were spreading propaganda against traditional medicines popular in India. The IMA informed the court that Patanjali continued to publish ads claiming to offer a "permanent solution" for conditions like blood pressure, asthma, and diabetes, alongside selling personal care products and Ayurvedic medicines.
The drop in Patanjali Foods shares marks the third successive loss, with the stock ending negatively in six of the last seven trading sessions.
Source : ANI
Tags : Acharya Balakrishnan , FMCG , Indian Medical Association , shares , Regulatory Filing , Patanjali Foods , Baba Ramdev , Notices , Supreme Court , Contempt Proceedings ,
Summary : Patanjali Foods shares decline 4% after the Supreme Court issues notices to Baba Ramdev and Acharya Balakrishnan over alleged violation of its orders. The court restrained Patanjali Ayurved from advertising medicinal products, prompting a clarification from Patanjali Foods that the order doesn't apply to it. The SC's action follows a dispute with the Indian Medical Association, accusing Patanjali of disparaging conventional medicines. The stock's decline continues for the third consecutive day amidst ongoing legal concerns.
Adversitement