Servotech Renewable Power System Incorporates ‘Servotech Foundation’ as Wholly-Owned Section 8 Subsidiary

Servotech Renewable Power System Limited has incorporated a wholly-owned Section 8 subsidiary named Servotech Foundation to act as its dedicated CSR arm. The move aligns with the company’s sustainability goals and was disclosed under SEBI Regulation 30.

Author: Aditya Pareek | EQMint

Servotech Renewable Power System Limited has informed the National Stock Exchange of India about the incorporation of a wholly-owned subsidiary in the form of a Section 8 company, named Servotech Foundation. The disclosure was made under SEBI Regulation 30 through an official exchange filing dated January 20, 2026.

The company stated that the incorporation has been completed in compliance with the provisions of the Companies Act, 2013, and relevant SEBI circulars. The new entity has been set up to serve as the dedicated Corporate Social Responsibility (CSR) arm of the company.

Key Details of Servotech Foundation

According to the annexure attached to the exchange filing, Servotech Foundation has been incorporated as a not-for-profit organisation under Section 8 of the Companies Act, 2013. The key details are as follows:

Name: Servotech Foundation

CIN: U88900DL2025NPL460538

Authorised Share Capital: ₹1,00,000

Paid-up Capital: ₹1,00,000

Ownership: 100% held by Servotech Renewable Power System Limited

Turnover: Not applicable (newly incorporated entity)

The initial subscription amount of ₹1,00,000 has been paid in cash towards 10,000 equity shares of face value ₹10 each, resulting in full ownership and control by the listed entity.

Nature of Transaction and Related Party Status

As Servotech Foundation is a wholly-owned subsidiary, it qualifies as a related party under applicable accounting and regulatory standards. The company clarified that:

The subsidiary has not yet commenced business operations

The incorporation does not involve any share swap or non-cash consideration

The transaction has been carried out at arm’s length

No additional approvals from governmental or regulatory authorities were required for the incorporation.

Purpose and Scope of CSR Activities

Servotech Foundation has been established to undertake and implement CSR activities on behalf of the parent company. As per the disclosure, the foundation will focus on areas permitted under Schedule VII of the Companies Act, 2013, including but not limited to:

Employability and skill development

Education and entrepreneurship

Sustainable development initiatives

Environmental protection

Health, nutrition, and community welfare

By creating a dedicated Section 8 subsidiary, Servotech Renewable Power System aims to institutionalise its social impact initiatives and ensure structured execution of CSR programs across India.

Strategic Rationale Behind the Section 8 Subsidiary

The incorporation of Servotech Foundation reflects a growing trend among listed companies to separate CSR execution from core commercial operations. A dedicated Section 8 subsidiary enables:

Better governance and monitoring of CSR funds

Focused implementation of long-term social initiatives

Alignment of sustainability goals with national priorities

For Servotech Renewable Power System Limited, the move strengthens its commitment to environmental, social, and governance (ESG) principles while reinforcing transparency and accountability.

Regulatory Compliance and Disclosure

The announcement has been made in accordance with:

Regulation 30 of SEBI (LODR) Regulations, 2015

SEBI Circular dated September 9, 2015

The company has provided all mandatory disclosures in Annexure I, covering ownership, capital structure, business objectives, and related party considerations, ensuring full compliance with listing norms.

What This Means for Investors

For investors tracking SEBI Regulation 30 disclosures, the incorporation of Servotech Foundation does not have a direct financial impact on revenues or profitability, as the entity is non-profit in nature. However, it signals:

A structured approach to CSR and sustainability

Long-term commitment to community and environmental development

Strengthening of ESG credentials

Such initiatives increasingly influence institutional and long-term investors who consider ESG performance alongside financial metrics.

Conclusion

Servotech Renewable Power System Limited has taken a meaningful step toward structured social responsibility by incorporating Servotech Foundation as a wholly-owned Section 8 subsidiary. With a clear mandate to undertake CSR activities across education, sustainability, health, and employability, the foundation is expected to play a central role in the company’s social impact journey.

Disclosed transparently under SEBI Regulation 30, the move reinforces Servotech Renewable Power System Limited’s commitment to responsible growth, regulatory compliance, and long-term value creation beyond business operations.

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