Intimation regarding further investment in Madhuvan Hospitality Private Limited, wholly owned subsidiary of the Company amounting to INR 3,00,00,000 as further investments by way of right issue.
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Jungle Camps India is investing INR 3 crore in its wholly owned subsidiary, Madhuvan Hospitality Private Limited, through a rights issue. This will be done by subscribing to 30 lakh fresh equity shares at Rs. 10 each (at par), increasing the subsidiary's paid-up capital from 8.6 lakh shares to 38.6 lakh shares. The subsidiary, incorporated in November 2023, is in the hotel and resort business and has reported zero turnover so far. The funds will be used for capital expenditure on the Mathura Hotel Project. The transaction is treated as a related-party deal but is being carried out at arm's length, and ownership stays at 100%.
This is an internal capital allocation into a subsidiary for a new hotel project, so it does not change Jungle Camps' ownership structure or bring in new revenue immediately. For shareholders, the key takeaway is that the company is deploying cash into expanding its hospitality footprint, but the subsidiary's nil turnover means the benefits are future-looking and carry execution risk on the Mathura project.