Hubtown Ltd Increases Stake in Subsidiary Rare Townships

Hubtown Ltd has invested Rs 36.78 crore to increase its stake in Rare Townships Private Limited (RTPL).
The company now holds 74.65% stake in RTPL, up from 72.91% previously.

Reader Takeaway: Hubtown consolidates control in RTPL via rights issue, signaling continued commitment to its subsidiary's real estate projects.

What just happened

Hubtown Ltd subscribed to a rights issue in its subsidiary, Rare Townships Private Limited (RTPL). The company was allotted 1,22,60,843 Class A equity shares at an issue price of Rs 30 per share. This price includes a face value of Rs 10 and a share premium of Rs 20. The total consideration for this transaction amounted to Rs 36.78 crore.

Why this matters

The acquisition allows Hubtown Ltd to tighten its control over RTPL. As a major player in the real estate sector, RTPL has shown a significant surge in turnover, reporting Rs 98.03 crore in FY 2025-26 compared to Rs 0.40 crore in the previous fiscal year. This capital injection is expected to support the ongoing construction and development of residential and commercial projects managed by the subsidiary.

What changes now

Following the allotment on October 8, 2026, Hubtown Ltd’s stake in RTPL has increased to 74.65%. The transaction was completed on an arm's length basis, and the company clarified that no external regulatory approvals were required for this internal capital reallocation. Promoters and the promoter group maintain their existing interest in line with their respective shareholdings in the entity.

Context metrics

RTPL's growth has been substantial, with turnover rising from Rs 0.63 crore in FY 2023-24 to Rs 98.03 crore in FY 2025-26, reflecting the scale-up in its development activities.