Polaris Consulting surges on higher indicative price for delisting

The stock hit a 52-week high of Rs 422, up 8% on BSE in intra-day trade, after the promoter of the company set Rs 370 per share as indicative price for delisting offer.

Polaris Consulting & Services hit a 52-week high of Rs 422, up 8% on BSE in intra-day trade, after Virtusa Consulting Services Private Limited (Acquirer), the promoter of the company set Rs 370 per share as indicative price for delisting of shares from the stock exchanges.

The indicative price is 67.6% premium to Rs 220.73 per equity share, at which the acquirer 78.65% of the voting share capital of the company in March 2016 from the erstwhile promoters and public shareholders and it is 59.2% premium to the floor price of 232.37, as determined in accordance with the Sebi delisting regulations, Virtusa Consulting Services Private Limited said in a regulatory filing.

After considering various facts including but not limited to capital allocation plan, availability of funds, and cost associated with debt financing availed, the board of the Acquirer considers it prudent to communicate, a indicative price of Rs 370 per equity share, at which Acquirer may be willing to accept the equity shares tendered by the public shareholders of the company in delisting offer, it added.

As of December 31, 2017, the promoters hold 74.42% stake in Polaris Consulting & Services. Individual shareholders held 10.54% stake in the company, followed by mutual funds (4.92%) and foreign portfolio investors (4.86%), while the remaining 5.26% stake are with the others.

Since October 25, 2017, the stock of Polaris Consulting & Services has outperformed the market by surging 74% against 5% rise in the S&P BSE Sensex.

At 10:49 AM; the stock was trading 7% higher at Rs 418 on BSE. The trading volumes on the counter more than doubled with a combined 602,787 shares changed hands on BSE and NSE so far.