Service Global Approves Rs1bn Subsidiary Investment Plan

Service Global Footwear Limited has formally sanctioned a strategic long-term equity commitment of up to Rs1 billion to establish its new subsidiary, Service Athletic Global Footwear (Private) Limited.

The approval was secured through a special resolution under Section 199 of the Companies Act, 2017, as notified to the Pakistan Stock Exchange.

Under the approved framework, the parent company will subscribe to fully paid ordinary shares at par value in the newly incorporated entity. The capital injection may be executed in multiple phases.

Importantly, while phased contributions by other shareholders may temporarily alter the shareholding ratio, Service Global Footwear Limited will retain 51% ownership in the paid-up capital upon completion of all capital contributions, ensuring majority control.

The special resolution will remain effective for a period of five years from the date of members’ approval.

The Chief Executive Officer and/or any director has been authorised to complete all regulatory, contractual, and statutory formalities necessary to implement the transaction.

Additionally, shareholders approved an ordinary resolution under Section 183(3) of the Companies Act, 2017, authorising the lease of the company’s Unit-4 facility (79,760 sq. ft.), located at 10 km Muridke, Sheikhupura Road, Punjab, to the newly incorporated subsidiary.

This development highlights key considerations under corporate structuring, phased equity financing, subsidiary control, and related-party asset leasing within Pakistan’s regulatory framework.