Polaris Consulting down 5% as promoter dilute stake via OFS

The stock was 5% at Rs 153 on the BSE in an otherwise firm market

Polaris Consulting & Services was trading 5% lower at Rs 153 on the BSE in otherwise firm market after the offer-for-sale (OFS) by the promoter of the company begins today, Thursday. The company has fixed a floor price of Rs 130 a share for the offer.

The stock hit an intra-day low of Rs 152 after opened at Rs 158 on the BSE. Till 10:33 am; a combined 219,107 shares changed hands on the BSE and NSE. 

Virtusa Consulting Services, the promoter of Polaris Consulting & Services, has proposed to make an OFS of 1.89 million equity shares and a greenshoe option of another 1.89 milllion shares. It represents 1.86% (without greenshoe option) of the equity share capital of the company.

The OFS is open for subscription on December 8 for non-retail investors and December 9 for retail investors and for non-retail investors, who choose to carry forward their bids.

The OFS was made to meet the minimum public shareholding norm. According to SEBI norm, all listed companies should have minimum public shareholding of 25%. As of September 30, 2016, the promoters held 78.61% stake in the company.