Strides Pharma Science has received approval from the National Company Law Tribunal (NCLT), Bengaluru Bench, for a proposed demerger scheme involving its wholly owned subsidiary, Arco Lab Private Limited.
The approved arrangement relates to the transfer of Arco Lab’s Life Sciences and Digital Innovation businesses into Pivot Path Private Limited. The company disclosed the development through a regulatory filing submitted to the stock exchanges on May 20, 2026.
According to the company’s filing, the Scheme of Arrangement was listed before the NCLT, Bengaluru Bench, for pronouncement of order on May 18, 2026.
The tribunal has approved the scheme involving the demerger of the identified business undertaking of Arco Lab into Pivot Path Private Limited under Sections 230 to 232 of the Companies Act, 2013.
The final order approving the arrangement was made available on the NCLT portal on May 20, 2026.
The approved scheme provides for the transfer of Arco Lab’s Life Sciences business and Digital Innovation business, referred to as the “Demerged Undertaking”, into Pivot Path Private Limited.
Arco Lab is a wholly owned subsidiary of Strides Pharma Science, while Pivot Path is currently a wholly owned subsidiary of Arco Lab.
The company stated that once the scheme becomes effective, Pivot Path will become a direct wholly owned subsidiary of Strides Pharma Science.
The company said Arco Lab and Pivot Path are in the process of applying for a certified copy of the NCLT order.
After receipt of the certified order, the entities will file the required documents with the Registrar of Companies, following which the scheme will formally become effective.
The effective date of the demerger will be communicated separately to the stock exchanges in due course.
Under the approved arrangement, the boards of Arco Lab and Pivot Path will determine a record date for share allotment.
Based on the share entitlement ratio defined in the scheme, Pivot Path will allot equity shares to Strides Pharma Science.
The filing also stated that shares currently held by Arco Lab in Pivot Path will be extinguished in accordance with the scheme provisions.
The demerged undertaking will vest with Pivot Path with effect from April 10, 2025, which has been specified as the appointed date.
Shares of Strides Pharma Science were trading at ₹1,143.80 on May 20, 2026, at 2:42 PM, compared to the previous close of ₹1,153.60. The stock declined by ₹9.80, or 0.85%, during the trading session.
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The NCLT approval marks a regulatory milestone for Strides Pharma Science’s proposed restructuring involving Arco Lab and Pivot Path. The demerger is expected to reorganise the Life Sciences and Digital Innovation businesses under a separate entity structure once the scheme becomes effective following the completion of statutory formalities.
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Published on: May 20, 2026, 3:47 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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