Rainbow foundations has announced the incorporation of a wholly owned subsidiary, Rainbow Foundations and Real Estates Private Limited, marking the company's strategic expansion into the real estate sector. The new entity was incorporated on February 13, 2026, and is yet to commence business operations.

Financial Structure and Capital Details

The subsidiary has been established with a proposed authorized capital structure designed to support its real estate operations:

Business Objectives and Operations

The newly incorporated entity will operate in the real estate sector with comprehensive business objectives spanning multiple areas of property development and construction services.

Primary Business Activities

The subsidiary will focus on two main operational areas:

Real Estate Development:

• Property development and construction
• Real estate brokerage and agency services
• Layout promotion and land development
• Building design and engineering consultancy
• Import and export of construction materials and prefabricated structures

Construction Contracting:

• Civil, mechanical, and labor contracting services
• Infrastructure development projects including roads, bridges, and utilities
• Turnkey construction solutions
• Specialized construction for railways, airports, and industrial facilities

Regulatory and Compliance Framework

The incorporation does not require any specific governmental or regulatory approvals and does not fall under related party transactions. The parent company has confirmed that promoters and group companies have no conflicting interests in the newly formed entity.

Strategic Implications

This incorporation represents Rainbow Foundations' strategic move to establish a dedicated real estate arm, allowing the company to pursue opportunities in property development, construction contracting, and related services. The subsidiary structure provides operational flexibility while maintaining full control through 100% ownership, enabling streamlined decision-making and resource allocation in the real estate sector.

Rainbow Foundations Limited announced that its Board of Directors has approved the incorporation of a wholly owned subsidiary during their meeting held on February 02, 2026. The decision was communicated to the Bombay Stock Exchange under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Subsidiary Details

The new entity will be named Rainbow Foundations and Real Estates Private Limited and will operate in the real estate sector. The proposed company will have its registered office situated in Chennai, Tamil Nadu, India, with incorporation currently under process.

Investment Structure

Rainbow Foundations Limited will maintain complete control over the subsidiary through a significant equity investment. The parent company will subscribe to 99.99% of the initial paid-up share capital through cash consideration.

Regulatory Compliance

The incorporation process requires no specific governmental or regulatory approvals, streamlining the establishment of the new entity. The Board meeting, which commenced at 17:00 hours and concluded at 18:00 hours, was conducted in compliance with SEBI regulations.

Strategic Focus

The subsidiary will concentrate on real estate business operations, expanding Rainbow Foundations Limited's presence in the real estate sector. This strategic move represents the company's commitment to diversifying its business portfolio within the real estate domain through a dedicated subsidiary structure.