Persistent Systems Limited has secured formal approval from the National Company Law Tribunal (NCLT), Mumbai Bench, to merge its wholly owned subsidiary, Capiot Software Private Limited, with itself. The order, dated April 9, 2025, was officially received by the company on April 11, 2025.
The merger, structured as an absorption, aims to consolidate operations and eliminate redundancies, ensuring a simplified corporate structure. The appointed date for the merger is April 1, 2024, and the scheme has been sanctioned in accordance with Sections 230 to 232 of the Companies Act, 2013.
Capiot Software, engaged in custom software development, web technologies, and IT consulting, will now be fully absorbed into Persistent Systems. Since Capiot was a wholly owned subsidiary, no new shares will be issued. The existing equity held by Persistent Systems in Capiot will be cancelled.
The merger is expected to drive operational synergies, reduce regulatory overhead, and enhance managerial efficiency. All employees of Capiot will be transitioned to Persistent Systems without interruption in service or change in employment terms.
The NCLT order emphasized that the sanctioning of the scheme will not restrict any statutory or regulatory bodies from proceeding with existing or future inquiries, if necessary. The merger does not involve any compromise with creditors, and no objections were raised during the hearing process.
Persistent Systems confirmed it would file the certified copy of the order with the Registrar of Companies and the Superintendent of Stamps in due course.
This strategic consolidation reflects Persistent’s broader effort to optimize its internal structure and improve stakeholder value.
