Persistent Systems Limited has received the Certified True Copy of the order from the National Company Law Tribunal (NCLT), Mumbai, approving the merger of its wholly-owned subsidiary, Arrka Infosec Private Limited, with the company. The scheme of amalgamation, which was finalized with an appointed date of April 1, 2025, aims to consolidate operations, improve administrative efficiency, and create a simpler corporate structure between the two entities.
Merger Rationale and Strategic Benefits
The merger is designed to streamline the corporate structure of Persistent Systems Limited by integrating the undertakings of Arrka Infosec Private Limited. As the transferor company is a wholly-owned subsidiary, this integration will facilitate better unified management and operational control. By consolidating these businesses, the company expects to generate synergy gains and achieve economies of scale by reducing redundant administrative costs and simplifying regulatory compliance procedures.
Details of the Scheme
Under the approved scheme, no new shares of the transferee company will be allotted in exchange for the holding in the transferor company, as it is a wholly-owned subsidiary. Instead, the issued and paid-up capital of Arrka Infosec Private Limited will be cancelled on the effective date. All assets and liabilities of the subsidiary will be transferred to Persistent Systems Limited, ensuring a seamless transition for all employees and stakeholders involved.
Legal Compliance and Next Steps
The NCLT pronounced the order on April 21, 2026, following a comprehensive review of the petition and reports from various regulatory authorities, including the Official Liquidator and the Income Tax Department. Persistent Systems Limited is now tasked with filing the necessary documentation with the Registrar of Companies in E-Form INC-28 within 30 days of receiving the order to formally complete the amalgamation process.
Source: BSE
