Sonata Software's Amalgamation with Encore IT Approved by NCLT
Sonata Software Limited's amalgamation with Encore I.T. Services Solutions Private Limited has been sanctioned by the NCLT. The scheme, effective from April 1, 2024, aims to improve operational efficiencies and reduce costs. The Transferor company will be dissolved without winding up.
The amalgamation is a significant corporate action that could lead to improved operational efficiency and cost savings, impacting the company's structure and future performance.
The NCLT's approval of the amalgamation scheme is a positive development for Sonata Software, as it is expected to lead to operational efficiencies and cost reductions.
Sonata Software Limited (Transferee Company) has received approval from the Hon'ble National Company Law Tribunal, Chennai Bench (NCLT) for the Scheme of Arrangement and Amalgamation with Encore I.T. Services Solutions Private Limited (Transferor Company). The NCLT passed its order on 5th June 2026, sanctioning the scheme under Sections 230 to 232 of the Companies Act, 2013.
The order approving the scheme was made available on the NCLT website on 11th June 2026. The scheme will become effective upon the filing of the certified copy of the order with the Registrar of Companies. The amalgamation aims to achieve operational efficiencies, streamline the corporate structure, reduce administrative costs, and enhance strategic focus.
The appointed date for the scheme is 1st April 2024. The NCLT's order also addresses the protection of employees, stating that their service terms and conditions will not be less favorable and that compensation will be paid in accordance with the law in case of retrenchment. The equity shares of the Transferor Company held by the Transferee Company will be cancelled, and no consideration will be issued. The Transferor Company will be dissolved without the process of winding up.
What to do with a filing like this
Sonata Software Limited filed this with the NSE as a statutory disclosure, categorised under amalgamation. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Sonata Software Limited. Read the original for the full detail.