EV, solar stock Servotech Power shares to be in focus on Wednesday after this incorporation update

Servotech Renewable Power System, a manufacturer of EV chargers, solar products, and power backup solutions, is likely to be on investors’ radar during Wednesday’s session, January 21, following the incorporation of a new subsidiary.

In its regulatory filing on Tuesday, the company informed that it has incorporated Servotech Foundation as a wholly owned subsidiary of the company, and, therefore, it will be treated as a related party.

The company noted that the subsidiary has yet to commence its business operations.

“It is incorporated as a Section 8 company under the Companies Act, 2013, and will act as the CSR arm of the company to promote, undertake, plan, organise, develop, implement, and execute various corporate social responsibility (CSR) activities. These will focus on areas such as employability, education, entrepreneurship, sustainable development, environmental protection, and health and nutrition, among others, and any additional areas that may be covered under Schedule VII of the Act from time to time,” the company said in its regulatory filing.

Earlier this month, the company announced its entry into the electric three-wheeler segment with the launch of SULTAN, a lithium-ion battery engineered specifically for electric three-wheelers, along with Zest, a dedicated battery charger designed to enhance charging efficiency and vehicle uptime for three-wheeler OEMs, dealers, and distributors.

The company also announced Voltie, its 2 kW on-grid solar inverter engineered for residential and small-scale commercial use, further strengthening its renewable energy offerings.

India’s electric three-wheeler segment has emerged as one of the fastest-growing categories within electric mobility, supported by urbanization, rising last-mile delivery needs, and policy incentives.

Servotech Renewable Power share price remains under pressure

The company’s shares have been receiving a severe beating from Dalal Street investors since June, crashing 61% from their recent highs, reaching the current level of ₹65.85 apiece.

After closing five out of the last six months in losses, the sell-off further deepened in the current month, with the stock losing another 17.2%. The shares have ended 2025 with a sharp crash of 52.3%, their biggest calendar-year fall in the last five years.

Even as the short-term trend appears weak, the stock’s long-term performance still looks impressive, as it is higher by 2920% in the last five years.

Between 2020 and 2024, the stock enjoyed a sustained bull run, closing all those calendar years higher and delivering a massive return of 22,420%.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.