Polaris Financial spurts on buzz software majors vie for IT biz unit

Meanwhile, the S&P BSE Sensex was up 53.67 points, or 0.27%, to 19,573.16.

On BSE, 13.01 lakh shares were traded in the counter as against an average daily volume of 86,812 shares in the past one quarter.

The stock hit a high of Rs 138.40 and a low of Rs 121 so far during the day. The stock had hit a 52-week high of Rs 147.30 on 20 September 2012. The stock had hit a 52-week low of Rs 96.10 on 14 May 2013.

The stock had outperformed the market over the past one month till 6 June 2013, rising 12.16% compared with the Sensex's 0.78% fall. The scrip had, however, underperformed the market in past one quarter, rising 0.17% as against Sensex's 1.39% rise.

The small-cap company has an equity capital of Rs 49.75 crore. Face value per share is Rs 5.

According to the report, while L&T Infotech has placed a $330-million offer, Tech Mahindra's bid is more than $350 million. Both the offers, however, have come below the asking valuation of $400-450 million.

The report added that Bengaluru-based Wipro and Infosys too are contenders for Polaris's IT services unit after founder Arun Jain and an affiliate of Citigroup, which holds about 20% stake, decided to sell the IT services business that accounts for more than 70% of the company's revenues.

The bidders are currently going through the vendor due diligence reports. All the four bidders have the option to raise their bids in the coming weeks, the report said.

On a consolidated basis, Polaris Financial Technology's net profit fell 28.3% to Rs 43.84 crore on 7.4% increase in net sales to Rs 554.73 crore in Q4 March 2013 over Q4 March 2012.

Polaris Financial Technology is a global leader in financial technology for banking, insurance and other financial services. With over 25 years of expertise in building a comprehensive portfolio of products, smart legacy modernization services and consulting, Polaris owns the largest set of intellectual properties for a comprehensive product suite, Intellect Global Universal Banking (GUB) M180.

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