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.

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.

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.

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.

PDS Limited has incorporated a new wholly owned subsidiary, PDS Global Sourcing Limited, effective March 20, 2026. The incorporation was announced through a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Subsidiary Details and Investment

The company has made a strategic investment in the new subsidiary through cash consideration. The investment details are structured as follows:

Business Focus and Operations

PDS Global Sourcing Limited will operate in the textiles and apparels industry. The subsidiary has been established with comprehensive business objectives aimed at strengthening PDS Limited's market presence. The primary goal involves establishing a comprehensive presence in the textile industry through multiple operational channels.

The subsidiary's business strategy encompasses:

• Manufacturing, processing and trading of garments, textiles, fibres, and yarns
• Expanding reach across domestic and international markets
• Operating through retail, wholesale, and e-commerce channels
• Enhancing value, profitability, and operational efficiency

Regulatory Compliance

The incorporation has been completed in accordance with regulatory requirements, with no specific governmental or regulatory approvals needed for the establishment. The disclosure has been made pursuant to Schedule III of the SEBI Listing Regulations and SEBI Circular No. SEBI/HO/CFD/PoD-2/CIR/P/2024/185 dated December 31, 2024.

Strategic Significance

The establishment of PDS Global Sourcing Limited represents a strategic expansion initiative for PDS Limited in the textiles sector. The wholly owned subsidiary structure provides complete operational control while enabling focused business development in manufacturing, processing, and trading activities across multiple market channels.