$SONATSOFTW

Sonata Software surged nearly 19% in intraday trading on Tuesday after investors welcomed the approval of the merger between the company and its wholly owned subsidiary, Encore IT Services Solutions Pvt Ltd, by the Chennai bench of the National Company Law Tribunal (NCLT). The stock climbed as much as 19.09% during the session before paring some gains. Sonata Software was trading at Rs 306.05, up Rs 45.70 or 17.55% from its previous close. The rally followed the NCLT's order dated June 11 approving the scheme of amalgamation between Sonata Software and Encore IT Services. In its ruling, the tribunal stated that the merger appeared to be in the best interests of the companies' stakeholders and was not detrimental to their members. Under the approved scheme, Encore IT Services Solutions Pvt Ltd will be dissolved without undergoing a separate winding-up process, with all its operations integrated into Sonata Software. According to the company, the merger is intended to streamline the group's corporate structure, reduce administrative and compliance-related expenses, and enhance overall operational efficiency.