Patanjali Foods witnessed its shares fall by over 5% on February 28 after the Supreme Court (SC) served a contempt notice to Patanjali Ayurved, barring the Ramdev-owned conglomerate from publishing advertisements. 

Patanjali Foods’ shares hit an intraday low of Rs 1,535, 5.4% lower than its previous closing price on the National Stock Exchange (NSE). At 02:10 pm, the stock was trading 4.16% lower at Rs 1,555.25. 

The Honourable Supreme Court notified Patanjali Ayurved and its Managing Director, Acharya Balakrishna, for publicly disobeying its orders and continuing to publish misleading advertisements for its medicines. 

SC also restrained Patanjali Ayurved from publishing advertisements for its traditional Ayurvedic medicinal products that claim to cure some diseases or ailments. The apex court issued its order in an ongoing legal dispute with the Indian Medical Association (IMA) and said the entire country has been “taken for a ride”.

However, Patanjali Foods stated in a regulatory filing that observations of the Supreme Court do not relate to the company. It also said it is an independent listed entity operating in only edible oil and food FMCG products.

The filing added that the SC order would not impact Patanjali Foods’s business operations and financial performance.