Mastek Limited has announced the voluntary winding up of its step-down subsidiary Mastek Systems (Malaysia) Sdn. Bhd. under the applicable provisions of the Malaysian Companies Act. The company disclosed this development to stock exchanges on January 9, 2026, in compliance with SEBI listing regulations.

Financial Impact and Subsidiary Details

The Malaysian subsidiary had minimal contribution to Mastek's overall business operations. As of March 31, 2025, the financial metrics of the subsidiary were:

Mastek emphasized that the subsidiary was not classified as a material subsidiary under regulatory definitions, indicating its limited operational significance to the parent company's business.

Business Operations Impact

The company has explicitly stated that the winding up of Mastek Systems (Malaysia) Sdn. Bhd. will not affect its overall consolidated revenue, business operations, or profitability. This assessment reflects the subsidiary's minimal contribution to the group's financial performance, representing less than 1% of both turnover and net worth.

Regulatory Compliance and Process

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement follows recent SEBI circulars issued in November and December 2024, which mandate specific disclosures for subsidiary-related corporate actions.

Key aspects of the winding up process include:

• Voluntary initiation under Malaysian Companies Act provisions
• Subject to regulatory approvals in Malaysia
• No sale or disposal transaction involved
• No related party transactions applicable

Next Steps and Timeline

Mastek has committed to informing stock exchanges upon completion of all formalities related to the voluntary winding up process. The company has not provided a specific timeline for completion, noting that the process is subject to regulatory approvals from Malaysian authorities.

The winding up represents a routine corporate restructuring action for a non-material subsidiary with minimal operational impact on Mastek's core business activities and financial performance.

Mastek has announced that its subsidiary unit in Malaysia has initiated voluntary winding up proceedings. This development marks a significant corporate restructuring decision by the IT services and digital transformation company.

Corporate Restructuring Decision

The voluntary winding up of the Malaysian subsidiary represents a strategic move by Mastek to reorganize its international operations. Unlike involuntary liquidation, voluntary winding up is a planned process initiated by the company itself, typically undertaken when shareholders decide to cease operations in a particular jurisdiction.

Impact on Southeast Asian Operations

This decision affects Mastek's presence in the Southeast Asian market, where Malaysia served as one of its operational bases. The voluntary winding up process will involve the orderly closure of the Malaysian entity, including the settlement of obligations and distribution of assets according to legal requirements.

Strategic Implications

The move suggests Mastek's focus on optimizing its global footprint and potentially reallocating resources to more strategic markets. Companies often undertake such restructuring to improve operational efficiency and concentrate on regions with better growth prospects or strategic alignment with their business objectives.

Regulatory Process

The voluntary winding up process in Malaysia will follow the prescribed regulatory framework, ensuring compliance with local corporate laws and regulations. This structured approach allows for the systematic closure of operations while meeting all legal obligations to stakeholders, creditors, and regulatory authorities.