Entities Involved in the Merger The upcoming merger involves eMudhra Inc, a USA-incorporated company and wholly owned subsidiary of the parent company, and Sendrcrypt Technologies Inc, a New Jersey-based company. Sendrcrypt Technologies Inc is a step-down wholly owned subsidiary of eMudhra Inc and also a wholly owned subsidiary of the parent company. For the fiscal year ending March 31, 2024, eMudhra Inc reported a revenue of USD 16.14 million, while Sendrcrypt Technologies Inc had a revenue of USD 0.5 million.

Related Party Transaction Analysis The merger transaction falls under the category of related party transactions, as it involves two wholly owned subsidiaries of the same parent company. According to Regulation 23(5)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, such transactions are exempt from detailed disclosure requirements, as they are conducted at “arm’s length”.

Business Areas of the Merging Entities

Technology Services and Solutions Both eMudhra Inc and Sendrcrypt Technologies Inc are engaged in providing advanced technology services and solutions. The merger is expected to consolidate their technological capabilities and streamline their operations, creating a more efficient entity capable of better addressing market demands.

Rationale Behind the Merger

Achieving Operational Efficiencies The primary rationale for the amalgamation is to promote and accomplish efficiencies in the business. This consolidation is set to reduce both administrative and operating costs across the board. By combining the operations of the two entities, the merger aims to streamline business processes and enhance the overall efficiency of the resources used by the constituent companies.

Resource Utilization and Asset Consolidation Another key benefit of the merger is the consolidation of assets. This move is expected to lead to more efficient utilization of resources and a better alignment of the companies' operational activities. Importantly, the merger will not result in any immediate financial gain or loss but will simply pool the interests of the companies involved.

Details of the Merger Process

No Cash Consideration or New Shares Issued The merger will involve no cash consideration or issuance of new shares, as both eMudhra Inc and Sendrcrypt Technologies Inc are wholly owned subsidiaries of the parent company. This means that there will be no alteration in the shareholding pattern of the parent company as a result of this merger.

Unchanged Shareholding Pattern The shareholding pattern of the parent company remains unchanged post-merger. As both entities are subsidiaries, the merger is more about streamlining operations and resource management rather than affecting the ownership structure.

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