Capital infusion through a rights issue will not alter Patanjali Foods’ ownership in Contemporary Agro, which remains a wholly owned subsidiary focused on agricultural innovation and farmer training
Patanjali Foods has infused Rs 5 crore into its wholly owned subsidiary, Contemporary Agro Private or CAPL, through a rights issue of preference shares, according to a regulatory filing.
The company subscribed to 50 lakh zero per cent redeemable preference shares with a face value of Rs 10 each. The shares were issued by CAPL on a rights basis and the investment was made in cash.
Patanjali Foods said the transaction qualifies as a related-party transaction because CAPL is its wholly owned subsidiary. However, it added that the deal was undertaken on an arm’s-length basis.
Following the capital infusion, Patanjali Foods’ shareholding in CAPL remains unchanged, with the subsidiary continuing to be wholly owned by the company.
Focus On Agriculture
Incorporated in April 2024, CAPL is engaged in agricultural and allied activities. The subsidiary focuses on farmer training, enhancement of farming practices, agricultural innovation, plantation-related activities and the production of fruit, vegetable and grain seeds.
According to the filing, CAPL reported nil turnover for the financial year ended 31 March 2026.
Separately, Patanjali Foods reported a 46 per cent year-on-year rise in profit after tax to Rs 524 crore in the quarter ended March 2026, supported by growth in its edible oil and fast-moving consumer goods (FMCG) businesses.
The company also continued to expand its oil palm cultivation operations. As of March 2026, the cultivated area under the programme stood at 1.11 lakh hectare across 12 states.
