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Informist, Friday, Jun. 12, 2026

 

EW DELHI – The Chennai bench of the National Company Law Tribunal has approved Encore I.T. Services Solutions Pvt. Ltd.'s merger with Sonata Software Ltd. Encore I.T. Services is a wholly-owned subsidiary of Sonata Software. The scheme of amalgamation by Encore I.T. Services and Sonata Software seems to be prima facie not in any way detrimental to the interest of the members of the companies, said the tribunal. Encore I.T. Services will get dissolved without the process of winding up, said the tribunal.

 

The entire equity shares of Encore I.T. Services held by Sonata Software by itself and through its nominees will get cancelled or extinguished, said the scheme. The shares or the share certificates of Encore I.T. Services in relation to the shares held by Sonata Software, as the case may be without any further application, acts, instruments or deeds, be deemed to have been automatically cancelled and be of no effect without any necessity of them being surrendered, it said.

 

According to the scheme, the merger will help achieve operational efficiencies. This consolidation of the companies is expected to streamline the corporate structure, reduce administrative costs and enhance the strategic focus on core business activities, said the merger scheme. The merger will help to consolidate the business at one place and effectively manage both the companies as a single entity, which will provide several benefits including streamlined group structure by reducing the number of separate legal entities, reducing the multiplicity of legal and regulatory compliances, and rationalising cost, it said.

 

Encore I.T. Services is a global information technology services and software development organisation. Encore specialises in end-to-end digital transformation, cloud computing, and custom software development. Sonata Software is a leading global modernisation engineering and information technology services company. Sonata Software specialises in artificial intelligence-led digital transformation, cloud and data modernisation, and enterprise resource planning using its proprietary platform.

 

Thursday, shares of Sonata Software ended 2.4% lower at INR 254.85 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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