Capital Trade Links approves ₹10 crore investment in Rhythms Industries
- Capital Trade Links approved investment up to ₹10 crore in Rhythms Industries
- Board authorised subscription to rights issue entitlements and renounced shares
- Incorporation of wholly owned subsidiary Rentworks Services India approved
- Rhythms Industries turnover grew from ₹50.18 crore in FY24 to ₹103.68 crore in FY26
*this image is generated using AI for illustrative purposes only.
Capital Trade Links Limited board approved an investment of up to ₹10 crore in Rhythms Industries Limited and its subsidiaries, alongside a subscription to the target company's rights issue.
The decision, taken at a meeting held on September 23, 2026, authorises the company to subscribe to its entitlement in the rights issue of Rhythms Industries Private Limited. The board also permitted the acquisition of additional equity shares validly renounced by other shareholders. The proposed investment may be structured as equity, debt, or other permissible securities in one or more tranches.
Strategic expansion into FMCG and rental sectors
The company currently holds 16.36% equity in Rhythms Industries Private Limited. The rights issue offers shares at ₹15 per share against a face value of ₹10. Capital Trade Links' specific entitlement is 1,11,290 equity shares for a consideration of ₹16.69 lakh. Additionally, the board authorised the subscription of up to 5,68,843 additional renounced shares, representing a potential outlay of ₹85.33 lakh.
Rhythms Industries operates in the Fast-Moving Consumer Goods (FMCG) sector under the "365 Days" brand, with a distribution network exceeding 3,000 outlets. The transaction is not classified as a related party transaction, as neither the promoter nor promoter group holds any interest in the target entity.
New subsidiary for equipment leasing
In a separate move to diversify operations, the board approved the incorporation of a wholly owned subsidiary named Rentworks Services India Private Limited. This entity will engage in renting and leasing furniture, appliances, and other tangible assets. The name has been reserved by the Central Registration Centre, Ministry of Corporate Affairs.
The new subsidiary will be incorporated at a face value of ₹10 per equity share, with Capital Trade Links holding 100% of the share capital. This initiative aligns with the company's long-term strategic vision to establish a scalable presence in the equipment rental and leasing sector.
What the numbers show
The financial trajectory of Rhythms Industries Private Limited indicates robust growth, with turnover rising from ₹50.18 crore in FY24 to ₹72.10 crore in FY25, and reaching ₹103.68 crore in FY26. This represents a significant year-on-year expansion, suggesting strong market traction for its FMCG products. The proposed investment cap of ₹10 crore is substantial relative to the target's current paid-up capital of ₹91.67 lakh, indicating a serious intent to deepen strategic ties or potentially acquire control, as noted in the disclosure regarding the impact of acquisition.
Historical Stock Returns for Capital Trade Links
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.68% | +2.69% | -1.06% | +84.71% | +62.37% | +809.09% |
How will the potential acquisition of control in Rhythms Industries impact Capital Trade Links' consolidated financial statements and debt profile?
What specific capital expenditure plans does Rentworks Services India Private Limited have for its initial fleet of furniture and appliances?
Can Rhythms Industries sustain its triple-digit revenue growth trajectory as it scales beyond its current 3,000-outlet distribution network?
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