Polaris board to take up Tiptop Holdings merger on Oct 18

Our eFE Bureau in Chennai

Polaris Software Lab Ltd will consider the merger of Tiptop Holdings Ltd, its wholly owned subsidiary, with itself, at its board meeting to be held on October 18, according to an announcement by the Bombay Stock Exchange (BSE). Tiptop owns five acres of land in Gurgaon, which will be used to build a software development centre by Polaris in the future.

The company spokesperson said that the move would help consolidate resources and the land would aid future growth. As Tiptop is a 100-per cent subsidiary of Polaris, there would not be any increase in the share capital of the Chennai-based software firm. Also, there are no immediate plans to construct a development centre on the land owned by Tiptop.

Polaris Software had acquired Tip-Top Holdings Pvt Ltd on December 20, 1999. The entire share capital of Tiptop was acquired for Rs 2.78 crore and then it was converted into a wholly owned subsidiary of Polaris. Currently, Polaris has its own development centre near Chennai, spread over 1,30,000 square feet that houses 850 professionals. It is also constructing another centre adjacent to the existing one, at a cost of Rs 33 crore. This centre will be spread over 2,00,000 square feet and will house 1,200 professionals. This project will be completed by March 2002.