Hubtown Limited disclosed an additional investment in its subsidiary, Rare Townships Private Limited (RTPL), made by subscribing to a rights issue. The transaction was completed on October 8, 2026.
Nature of the Event
RTPL allotted 1,22,60,843 Class A equity shares to Hubtown Limited. Each share has a face value of ₹10 and was issued at a premium of ₹20 per share, resulting in an issue price of ₹30 per share. The total consideration for the transaction is ₹36,78,25,290 (₹36.78 crore), paid in cash.
Shareholding Impact
Pursuant to this allotment, Hubtown's holding in RTPL increased from 72.91% to 74.65% of the Class A equity share capital.
Details of the Acquired Entity (RTPL)
Rare Townships Private Limited is domiciled in India and was incorporated on June 5, 2000, under the Companies Act, 1956. It is engaged in the real estate business, specifically the construction and development of residential and commercial premises. Its paid-up share capital, considering this rights issue, is ₹47,45,91,730 (₹47.46 crore).
Financial Performance of RTPL
Turnover for the last three financial years:
- FY 2023-2024: ₹63.27 lakhs
- FY 2024-2025: ₹40.45 lakhs
- FY 2025-2026: ₹9802.79 lakhs (₹98.03 crore)
Transaction Details
- Nature of Consideration: Cash
- Cost of Acquisition: ₹30 per share
- Percentage of Shareholding Acquired: Holding increased by 1.74% (from 72.91% to 74.65%)
- Related Party Transaction: Yes, as RTPL is a subsidiary of Hubtown Limited. The transaction was undertaken at arm's length.
- Governmental/Regulatory Approvals: Not applicable
- Objects and Effects: The acquisition was made by subscribing to a rights issue offered by RTPL. Both Hubtown and RTPL are in the same line of business (real estate).