Newgen Software Technologies Limited announced that its Board of Directors has approved a Scheme of Arrangement for the amalgamation of its wholly-owned subsidiary, Newgen Computers Technologies Limited, with and into the parent company. This strategic move aims to simplify the group’s corporate structure and streamline administrative and operational compliances. No new shares will be issued as part of this amalgamation, maintaining the current shareholding pattern.
Newgen Software Approves Amalgamation Scheme
On October 23, 2026, the Board of Directors of Newgen Software Technologies Limited convened to discuss key strategic initiatives. A significant outcome of this meeting was the approval of a Scheme of Arrangement for the amalgamation of Newgen Computers Technologies Limited (NCTL), a wholly-owned subsidiary, with and into Newgen Software Technologies Limited (NSTL), the Transferee Company.
Rationale and Structure Simplification
The proposed amalgamation is driven by the objective of simplifying the existing group structure by consolidating NCTL into NSTL, creating a single legal entity. This consolidation is expected to rationalize administrative, operational, legal, and regulatory compliances, thereby improving efficiency and potentially reducing costs. The management believes this will lead to more streamlined operations and better utilization of resources.
Transaction Details and Shareholding
Under the terms of the Scheme, no new shares will be issued, and no cash consideration will be paid by the Transferee Company to the shareholders of the Transferor Company, as NCTL is a wholly-owned subsidiary. Consequently, the requirement for determining a share exchange ratio and preparing a valuation report is not applicable. The shareholding pattern of Newgen Software Technologies Limited is expected to remain unchanged following this amalgamation. The Appointed Date for the Scheme is set as April 1, 2026.
Financial Results Review
In addition to the amalgamation approval, the Board also reviewed and approved the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026. The company has also provided limited review reports for these financial results.
Source: BSE
