Polaris Industries to de-merge products business

Written by ENS Economic Bureau | Chennai | Updated: Mar 19 2014, 14:20pm hrs
Amid reports of the company being put on the block, Chennai- based IT company Polaris Financial Technology on Tuesday announced the demerger of its products (Intellect) business into an independent entity. The company will be filing the scheme of demerger with the stock exchanges, market regulator Sebi and high court as per extant regulations.

After demerger, the product company will be known as Intellect Design Arena (Intellect) and comprise of four distinct businesses such as global universal banking, risk and treasury management, global transaction banking and insurance. Polaris will continue to run the services business with a strong vertical and solution focus. Polaris Financial Technology executive chairman Arun Jain said, From a customer perspective, this new structure aligns investments, competencies, decision making and processes to drive the next level of value creation.

As consideration for the demerger, every shareholder of Polaris will receive one share of Intellect. The product business is significantly different from the services stream, in terms of investments into product development, talent and sales and distribution.

The Polaris board, taking into consideration the recommendations made by a special committee comprising of independent directors of the board as well as the audit committee, has decided to offer a special option to the shareholders of Intellect to exchange the shares allotted pursuant to the demerger against fully secured non-convertible debentures (NCD).

Shares jump 11.87% on BSE

MUMBAI: Shares of Polaris Financial Technology Tuesday surged over 11 per cent after the company announced the demerger of its products business into a separate entity.

The IT firms scrip ended the day 11.57 per cent higher at Rs 152.80 on the BSE. During the day, the stock surged 17.26 per cent to Rs 160.60. (PTI)