Persistent Systems Limited has announced a significant expansion into the Chinese market through the establishment of a Wholly Owned Foreign Enterprise (WFOE) by its Singapore subsidiary. The development marks a strategic milestone in the company's international growth trajectory.

Establishment Details

Persistent Systems Pte. Ltd., Singapore, which is a wholly owned subsidiary of Persistent Systems Limited, successfully established its WFOE in China on February 27, 2026. The establishment received official recognition with the issuance of a business license from the Shanghai Administration for Market Regulation (SAMR).

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also adheres to specific SEBI circulars, including:

• SEBI Circular ref. no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023
• SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026

Strategic Expansion

The establishment of the WFOE in China represents Persistent Systems' continued expansion in the Asian market. The new entity, operating under the name Baixinteng System Service (Shanghai) Co. Ltd., will serve as the company's operational base in China, potentially enhancing its service delivery capabilities in the region.

The business license was formally received on February 28, 2026, completing the regulatory requirements for the entity's establishment. This development strengthens Persistent Systems' international footprint and positions the company to better serve clients in the Chinese market.

Persistent Systems has issued an official clarification to stock exchanges addressing recent market speculation regarding potential merger and acquisition opportunities. The company filed a formal statement under Regulation 30 of SEBI regulations to provide transparency on its current M&A position.

Official Exchange Communication

The company submitted a detailed clarification to both NSE and BSE on February 24, 2026, specifically addressing market speculation about potential M&A transactions. Company Secretary Amit Atre signed the official communication, emphasizing the organization's commitment to regulatory compliance and transparent disclosure practices.

SEBI Compliance Statement

Persistent Systems clearly stated that under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, there is currently no imminent M&A transaction that requires disclosure or intimation. The company emphasized its governance-oriented approach and assured stakeholders that any M&A proposal requiring regulatory disclosure would be communicated transparently.

Strategic Growth Approach

While addressing speculation, the company confirmed that exploring inorganic growth opportunities remains part of its ongoing business strategy. This balanced approach demonstrates Persistent Systems' commitment to growth while maintaining strict adherence to regulatory requirements and disclosure norms.

The official clarification provides stakeholders with definitive information about the company's current M&A status while reinforcing its commitment to transparent communication and regulatory compliance.