Persistent Systems to Absorb Arrka Infosec in Merger of Undertakings

Persistent Systems to Absorb Arrka Infosec in Merger of Undertakings​

Persistent Systems Limited has successfully completed the merger of Arrka Infosec Private Limited, its wholly owned subsidiary. The merger was sanctioned by the National Company Law Tribunal (NCLT), Mumbai Bench, confirming the absorption of Arrka Infosec into the parent company, Persistent Systems Limited. The merger is intended to rationalize the corporate structure and achieve operational synergies.

The NCLT sanctioned the Scheme of Amalgamation between Persistent Systems Limited (Transferee Company) and Arrka Infosec Private Limited (Transferor Company). Persistent Systems Limited received the Certified True Copy of the NCLT order approving the merger on May 11, 2026.

Merger Details and Rationale​

The merger was approved by both entities' boards of directors via respective resolutions dated April 23, 2025 (Persistent Systems) and April 24, 2025 (Arrka Infosec). The Scheme was designed to consolidate the operations of Arrka Infosec into Persistent Systems Limited.

The rationale for the amalgamation includes several key corporate objectives:

• Structural Simplification: Maintaining a simple corporate structure and eliminating duplicate corporate procedures.
• Operational Synergy: Combining all undertakings of Arrka Infosec into Persistent Systems to facilitate effective management and unified control.
• Cost Efficiency: Creating economies in administrative and managerial costs by consolidating operations, thereby substantially reducing administrative responsibilities and legal compliance complexities.

The participating entities involved in the merger are:

Terms of Amalgamation​

Under the scheme approved by the Tribunal, the merger operates as follows:

1. Consideration: Shares of Persistent Systems Limited shall be allotted in lieu or exchange for the holding of the Transferee Company in the Transferor Company.
2. Capital Status: The issued and paid-up capital of Arrka Infosec Private Limited shall stand cancelled upon the Effective Date.
3. Timeline: The Appointed Date fixed under the Scheme is April 1, 2025.

The Tribunal's order confirmed that all liabilities accruing in Arrka Infosec Private Limited shall transfer to Persistent Systems Limited. However, liabilities in respect of offenses committed under law by officers in default prior to the merger shall continue separately.

Operational Impact and Conclusion​

The NCLT has allowed and disposed of the Company Scheme Petition. As a result of the merger, Arrka Infosec Private Limited is dissolved without winding up.

The Tribunal noted that all employees of Arrka Infosec Private Limited in service on the effective date shall become employees of Persistent Systems Limited on the same date. These employees will continue service without any break or interruption, under terms and conditions no less favorable than those existing at Arrka Infosec.

The Petitioner Companies confirmed that all statutory requirements related to the Scheme have been fulfilled, and no opposition was received from other statutory or regulatory authorities, deeming the Scheme unopposed.

PERSISTENT Stock Price Movement​

Shares of Persistent Systems Limited today slipped by 0.27% to settle at ₹5098.1. The stock shed ₹13.60 for the session, closing amid a notable volume of 339,705 shares after testing a range between ₹5080 and ₹5173.3.