Persistent Systems Simplifies Structure with Arrka Infosec Merger Approval

Persistent Systems, a prominent IT services firm, announced on Monday that it has secured approval from the National Company Law Tribunal (NCLT) for merging its wholly-owned subsidiary, Arrka Infosec Private Limited, into the parent organization.

In a formal statement to the stock exchanges, Persistent Systems emphasized that the merger is designed to simplify its corporate structure, achieve synergy gains, and eliminate redundant corporate processes. The company further informed the bourses that it has received a certified true copy of the NCLT's order issued by its Mumbai bench.

The tribunal highlighted that the amalgamation will consolidate all undertakings under one management, thus streamlining operations and minimizing administrative expenses. No new shares will be issued for the holding since Arrka Infosec is a wholly-owned subsidiary. The scheme's effective date will see the cancellation of Arrka Infosec's capital and the subsidiary's immediate dissolution.

(With inputs from agencies.)