Invested Rs 1 Cr in wholly owned subsidiary via rights issue

Chemkart India invested Rs 1 Crore in its wholly owned subsidiary Easy Raw Materials Pvt Ltd by subscribing to 10 lakh equity shares at Rs 10 each through a rights issue. The subsidiary, which trades pharma products and nutritional supplements, was already 100 percent owned and stays 100 percent owned after this allotment. As of March 2026, the subsidiary had NIL turnover, a loss of about Rs 59.47 lakhs, and a net worth of about Rs 578.60 lakhs. The investment is part of utilizing IPO proceeds to set up a manufacturing unit at the subsidiary. The transaction is a related party deal done at arms length.