Institutional Interest Props Up Polaris

Mumbai, May 30: | Updated: May 31 2002, 05:30am hrs
Polaris Softwares share price increased on Thursday due to fresh buying interest coming in from select funds and foreign institutional investors (FIIs). Dealers said that during trading hours, the stock spiralled downwards on account of news that the Securities and Exchange Board of India (Sebi) may check for insider trading in the Polaris-Orbitech merger.

On The Stock Exchange, Mumbai (BSE), the stock closed up 3.26 per cent at Rs 276.85 on volumes of 57,72,785 shares. The stock opened at Rs 264, hit a low of Rs 256 and touched an intra-day high of Rs 280.70.

Said Emkay Shares dealer Lokesh Agarwal: On account of news of the Sebi probe into the Polaris-Orbitech merger issue, the stock got negatively impacted. However, the stock recovered in the later half of the day due to good support from FIIs and funds.

Mr Agarwal further added that in spite of the negative Sebi-probe news, investors are confident about the stock as it is merging with Orbitech Solutions Ltd, a Citigroup company.

Further, dealers said that Polaris was the top traded stock on the BSE and second on the National Stock Exchange.

As per the merger agreement, 14 new Polaris shares will be issued for every 25 Orbitech shares.