Capital Trade Links acquires majority stake in Rhythms Industries
- Capital Trade Links acquired 6,65,001 equity shares of Rhythms Industries Private Limited via a rights issue allotted on October 1, 2026
- The aggregate consideration for the allotment was ₹99,75,015 at an issue price of ₹15 per equity share
- Shareholding in Rhythms rose from 16.36% (1,49,999 shares) to approximately 51.04% (8,15,000 shares) of post-issue paid-up capital
- Rhythms Industries has consequently become a subsidiary of Capital Trade Links
- Rhythms reported a turnover of ₹10,368.05 lakh in FY 2025-26, up from ₹5,017.74 lakh in FY 2023-24
*this image is generated using AI for illustrative purposes only.
Capital Trade Links Limited has acquired a controlling stake in Rhythms Industries Private Limited through a rights issue allotment completed on October 1, 2026, raising its shareholding from 16.36% to 51.04%.
Pursuant to the rights issue, Capital Trade Links applied for 6,70,000 equity shares, including its rights entitlement and additional equity shares. Rhythms allotted 6,65,001 equity shares to the company at an issue price of ₹15 per equity share, against a face value of ₹10 per equity share, for an aggregate consideration of ₹99,75,015. The company had been entitled to 1,11,290 rights shares and applied for a total of 6,70,000 rights shares, including additional rights shares.
Shareholding change and subsidiary status
Consequent to the allotment, Capital Trade Links' shareholding in Rhythms increased from 1,49,999 equity shares, representing 16.36%, to 8,15,000 equity shares, representing approximately 51.04% of the post-issue paid-up equity share capital of Rhythms. As a result, Capital Trade Links has acquired control over Rhythms, and Rhythms has consequently become a subsidiary of the company. The transaction was completed via cash consideration through normal banking channels. No governmental or regulatory approvals were required for the acquisition.
The following table summarises the key details of the acquisition:
| Parameter | Details |
|---|---|
| Target entity | Rhythms Industries Private Limited |
| Shares allotted | 6,65,001 equity shares |
| Issue price per share | ₹15 |
| Face value per share | ₹10 |
| Aggregate consideration | ₹99,75,015 |
| Pre-allotment shareholding | 1,49,999 shares (16.36%) |
| Post-allotment shareholding | 8,15,000 shares (51.04%) |
| Post-issue paid-up capital | ₹159.68 lakh |
| Completion date | October 1, 2026 |
| Mode of payment | Cash via banking channel |
About Rhythms Industries Private Limited
Rhythms Industries Private Limited was incorporated on May 31, 2017, and operates in the FMCG (Fast-Moving Consumer Goods) and food products manufacturing and distribution industry. The company is principally engaged in FMCG distribution, manufacturing, and allied consumer businesses, with an established distribution network of more than 3,000 outlets. It operates under the "365 Days" brand and has its presence in India.
The turnover of Rhythms for the last three financial years is as follows:
| Financial year | Turnover |
|---|---|
| FY 2025-26 | ₹10,368.05 lakh |
| FY 2024-25 | ₹7,209.52 lakh |
| FY 2023-24 | ₹5,017.74 lakh |
Strategic rationale
The acquisition is being undertaken as a strategic investment in Rhythms Industries Private Limited, with a view to exploring its business and growth opportunities. The transaction does not fall within related party transactions, and the promoter or promoter group or group companies of Capital Trade Links do not have any interest in Rhythms Industries Private Limited. The disclosure was made under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in continuation of an earlier disclosure dated September 23, 2026.
Historical Stock Returns for Capital Trade Links
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.03% | -4.41% | +0.73% | +87.41% | +22.85% | +830.07% |
How will the consolidation of Rhythms Industries' ₹103 crore turnover impact Capital Trade Links' consolidated financial statements for FY 2026-27?
What specific integration strategies will Capital Trade Links implement to leverage Rhythms' '365 Days' brand and its network of over 3,000 outlets?
Given Rhythms' rapid revenue growth of ~44% in FY 2024-25, what are the projected margin improvements expected from this acquisition?
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