Shares of US-headquartered Polaris Consulting and Services Ltd advanced 20% in the early morning trade on Thursday and were locked in upper circuit. The company’s promoter group Virtusa Consulting Services expressed the intention to purchase all of the equity shares of the company. The company has scheduled a board meeting which is to be held on 31 October 2017 to consider the proposal of voluntary delisting of the equity shares of the company.
The promoter presently holds 26,172,715 equity shares of Rs 5 each which represents 25.6% of the equity shares of the company. The stock of Polaris Consulting had returned about 60% since the beginning of this year so far. Today, it rose as much as 20% to Rs 291.05 to hit a nearly 16-and-half-year high and was locked in upper circuit.
“The delisting proposal, if successful, would provide an exit opportunity to the public shareholders….. The price at which the equity shares will be acquired under the delisting process will be determined …. in the reverse book building process. The public shareholders may tender their shares in the delisting offer at any price at or above the ‘floor price’,” Polaris Consulting said in an exchange filing.
“The objective of making the delisting offer is to enable the promoter group to obtain full ownership of the company, which will, in turn, provide enhanced operational flexibility. The promoter group will also realise the benefits of the company no longer listed in India, which would include cost savings and reduction in dedicating management time to supply with the requirements associated with the continued listing, which can be refocused in company’s business,” company said in an exchange filing.
Polaris Consulting will consider appointing SEBI registered merchant banker for carrying out due diligence as required in terms of Regulation 8 (lA) (ii) of the SEBI Delisting Regulations. And to obtain from Registrar and Transfer Agent details of trading in the shares of the Company for a period of two years by the top 25 shareholders along with details of off-market transactions of such shareholders for a period of two years and to obtain any other details as may be required by the Merchant Banker for carrying out due diligence as required in terms of Regulation 8 (lA) (ii) and 8 (lD) of the SEBI Delisting Regulations.