New Delhi, May 11 (PTI) IT services firm Persistent Systems on Monday said the National Company Law Tribunal (NCLT) has approved the merger of its wholly-owned subsidiary, Arrka Infosec Private Limited, with the parent company.
In a filing to the stock exchanges, Persistent Systems stated that it has received the certified true copy (CTC) of the order issued by the Mumbai bench of the NCLT.
The merger is aimed at maintaining a simple corporate structure, achieving synergy gains and eliminating duplicate corporate procedures, the company informed the bourses.
"The amalgamation of all undertakings of the transferor company (Arrka Infosec) into the transferee company (Persistent Systems) shall facilitate consolidation of all the undertakings in order to enable effective management and unified control of operations," the tribunal noted in its order, adding that the merger would substantially reduce administrative costs and the multiplicity of records.
Since Arrka Infosec is a wholly-owned subsidiary of Persistent Systems, no new shares will be allotted in exchange for the holding. The issued and paid-up capital of Arrka Infosec will stand cancelled on the effective date of the scheme, and the subsidiary will be dissolved immediately.
Pune-based Arrka Infosec, originally incorporated in 2012 as Innovative 21st Century Technologies Minds Private Limited, is engaged in information technology and IT-enabled services (ITeS).