NCLT Approves Demerger Scheme for Strides Pharma Science Subsidiary Arco Lab
Strides Pharma Science Limited has announced the approval of a Scheme of Arrangement concerning the demerger of a key business unit from its wholly owned subsidiary, Arco Lab Private Limited. The National Company Law Tribunal (NCLT), Bengaluru Bench, approved the scheme on May 18, 2026. The final order confirming the demerger was made available on the NCLT portal on May 20, 2026.The Scheme of Arrangement involves the demerger of Arco Lab's Life Sciences business and Digital Innovation business. These combined units constitute the Demerged Undertaking, which will be transferred into Pivot Path Private Limited, another wholly owned subsidiary of Arco Lab.
The proposed demerger was initially reported by Strides Pharma Science Limited, confirming the structure that involves Arco Lab and Pivot Path, which is itself a subsidiary of Arco Lab.
Operational Structure Changes
Upon the Scheme becoming effective, several material changes will take place within the corporate structure:- Pivot Path will become a wholly owned subsidiary of Strides Pharma Science Limited.
- The Demerged Undertaking will vest with Pivot Path, effective from the appointed date of April 10, 2025.
- The Board of Directors of Arco Lab and Pivot Path will determine the Record Date for share allotment. Based on this date, Pivot Path will allot equity shares to Strides Pharma Science Limited, following the share entitlement ratio outlined in the Scheme.
- Shares of Pivot Path held by Arco Lab are set to be extinguished in due course, in line with the Scheme.
Arco Lab and Pivot Path are currently in the process of applying to the NCLT to obtain a certified copy of the approval order. Once received, both entities will file this certified order with the Registrar of Companies, which is required for the Scheme to become fully effective. The precise Effective Date of the Scheme will be communicated to the Stock Exchanges subsequently.
STAR Stock Price Movement
Shares of Strides Pharma Science Limited are edging higher to ₹1155 as of 1:15 PM today, gaining 0.12% or ₹1.40 in live trading. The stock has seen brisk trading volume of 515,613 shares in the live market.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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