Bikaji Foods' managing director summoned in-person by ED in connection with a PMLA probe

The Managing Director of leading snacks major Bikaji Foods has been summoned by the ED connection with a PMLA investigation

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26 Aug, 2025 12:21

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The Enforcement Directorate has summoned the Managing Director of leading snacks major Bikaji Foods to be present in-person in connection with an investigation under the Prevention of Money Laundering Act, the company has informed on September 9, sending the shares sharply lower by over two percent.

"... the Company has received a summon from Directorate of Enforcement, Ministry of Finance, Government of India, seeking the presentation of Managing Director in-person, on behalf of the Company before the Authority under the Prevention of Money Laundering Act, 2002 (referred as the “PMLA”)," the statement said.

Clarifying that there is no financial impact on the business at this stage, Bikaji Foods said the company is not under any default in the matter. "...the Company will fully co-operate and assist the authority during the proceedings. Therefore, at the current stage of this matter, there is no financial impact on the Company."

While a summon does not allege any violations, Enforcement Directorate seeking the MD's in-person presence in a money laundering case may be construed as a negative by market participants, which is reflecting in the share prices.

Bikaji Foods has seen its operating margins decline in recent quarters due to a higher raw material costs, especially for palm oil. The company has targetted 12-13 percent volume growth in FY26 on the back of demand for family pack as well as rural penetration.

The FII shareholding in the company has decreased from 7.32 percent to 6.64 percent during the June quarter, however, DIIs have increased their holding from 12.20 percent to 13.37 percent in the same period. Promoters hold just under 75 percent stake in the company. The shares of the company have had a subdued 2025, and have come off its all-time highs.