PDS Limited announced that NexStyle Apparel Manufacturing Limited ceased to be its wholly owned subsidiary effective March 31, 2026, due to employee stock option allotments. The company made this disclosure in compliance with SEBI Listing Regulations, informing both NSE and BSE about the corporate structure change. This development reflects PDS Limited's employee engagement strategy through equity participation while maintaining its operational control as a majority stakeholder.

PDS Limited's NexStyle Apparel Manufacturing Ceases to be Wholly Owned Subsidiary

PDS Limited has announced a significant change in its subsidiary structure, informing stock exchanges that NexStyle Apparel Manufacturing Limited has ceased to be its wholly owned subsidiary. The corporate restructuring became effective from March 31, 2026, marking an important milestone in the company's organizational evolution.

Corporate Structure Change Details

The change in ownership structure occurred as a direct consequence of employee stock option allotments within NexStyle Apparel Manufacturing Limited. This development represents a strategic shift from complete ownership to a diluted stake, reflecting the company's commitment to employee participation through equity-based compensation.

Parameter: Details Effective Date: March 31, 2026 Subsidiary Name: NexStyle Apparel Manufacturing Limited Reason for Change: Employee Stock Option Allotments Previous Status: Wholly Owned Subsidiary Current Status: Subsidiary (Non-wholly owned)

Regulatory Compliance and Disclosure

The announcement was made in strict adherence to regulatory requirements under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. PDS Limited communicated this development to both major stock exchanges where its shares are listed, ensuring complete transparency with market participants.

The notification was signed by Abhishek Kanoi, Group Legal Head & Company Secretary, who holds ICSI Membership No. F-9530. The digital signature was applied on March 31, 2026, at 13:20:48 +05'30', confirming the authenticity and timeliness of the disclosure.

Market and Operational Implications

This corporate restructuring reflects PDS Limited's approach to employee engagement through equity participation programs. The allotment of employee stock options in NexStyle Apparel Manufacturing Limited demonstrates the company's strategy to align employee interests with business performance while maintaining operational control as a majority stakeholder.

The change does not affect PDS Limited's listing status or trading operations, as the company continues to trade on both NSE (Symbol: PDSL) and BSE (Code: 538730) under ISIN INE111Q01021.

PDS Limited has announced its intention to acquire the remaining 7% equity stake in two key Hong Kong subsidiaries through a proposed secondary acquisition. The company currently holds 93% equity stake in both GoodEarth Lifestyle Limited, Hong Kong and Progress Manufacturing Group Limited, Hong Kong through its step-down subsidiaries.

Acquisition Structure and Approval

The proposed acquisition involves purchasing the remaining 7% equity stake from existing shareholders in both subsidiaries. The transaction was approved on March 30, 2026, with necessary transfer documents executed and filed with relevant regulatory authorities in Hong Kong.

Parameter: Details Current Stake: 93% each Stake to be Acquired: 7% each Target Ownership: 100% Consideration: USD 2 (₹188 equivalent) Regulatory Jurisdiction: Hong Kong

Subsidiary Financial Performance

Both subsidiaries operate in the textiles and apparels sector with significant revenue contributions. The consolidated financial performance shows strong revenue generation across both entities.

Financial Metrics (March 31, 2025): GoodEarth Lifestyle Limited Progress Manufacturing Group Limited Consolidated Turnover: ₹337.00 crore ₹450.93 crore Consolidated PAT: ₹11.02 crore ₹14.31 crore Standalone Turnover: ₹87.93 crore ₹215.32 crore Standalone PAT: ₹(4.25) crore ₹(7.30) crore

Strategic Rationale

The proposed acquisition aims to simplify the shareholding structure and consolidate ownership across both subsidiaries. Additionally, the transaction will facilitate the implementation of Employee Stock Options Plan for the management team at the overall manufacturing holding level under PDS Limited.

Historical Performance

Both subsidiaries have demonstrated consistent revenue performance over the past three years, with consolidated turnover showing growth trends across multiple financial periods.

Consolidated Turnover History: GoodEarth Lifestyle Progress Manufacturing FY2024-25: ₹337.00 crore ₹450.93 crore FY2023-24: ₹234.84 crore ₹365.23 crore FY2022-23: ₹297.06 crore ₹416.72 crore

The acquisition represents a related party transaction conducted on an arm's length basis, with no additional interest from promoters or promoter group companies in the entities being acquired.

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