Persistent Systems Limited announced that its Board of Directors, at a meeting held on April 24, 2025, approved the proposal for the merger of M/s. Arrka Infosec Private Limited, a wholly-owned subsidiary, into Persistent Systems Limited.

The merger will be carried out through the National Company Law Tribunal (NCLT) route, subject to necessary statutory approvals.

The primary rationale for the amalgamation is to achieve entity rationalization and operational efficiency within the group.

Key details of the entities as of March 31, 2025:

• Arrka Infosec Private Limited (Transferor): Paid up Capital: 103,401 Equity Shares of ₹10 each. Turnover: ₹29.42 million (₹2.942 crore).
• Persistent Systems Limited (Transferee): Paid up Capital: 155,850,000 Equity Shares of ₹5 each. Turnover: ₹117,280.21 million (₹11,728.021 crore).

The transaction is considered a related party transaction as Arrka Infosec is a wholly-owned subsidiary, but it is exempt from certain provisions of the Companies Act, 2013 and SEBI LODR Regulations.