Polaris FT gains on buzz L&T Infotech may buy services unit

Polaris Financial Technology rose 2.13% to Rs 144.10 at 13:50 IST on BSE on a media report that L&T Infotech may be the front-runner to buy the company's services unit.

Meanwhile, the BSE Sensex was down 47.91 points, or 0.23%, to 20,845.98.

On BSE, 4.24 lakh shares were traded in the counter compared with average volume of 1.12 lakh shares in the past one quarter.

The stock hit a high of Rs 148 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 142.50 so far during the day. The stock 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 21 October 2013, rising 21.22% compared with the Sensex's 3.11% rise. The scrip had also outperformed the market in past one quarter, rising 19.98% as against Sensex's 3.69% rise.

The small-cap company has an equity capital of Rs 49.77 crore. Face value per share is Rs 5.

According to the report, Polaris Financial Technology (Polaris FT) is gearing up to sell its services business unit and L&T Infotech is believed to be leading the race to acquire this business estimated to be valued at about $400 million.

L&T Infotech, part of the engineering and construction major Larsen & Toubro (L&T), provides IT services and solutions.

Others who had been in talks with Polaris FT for this deal include IT services major Tech Mahindra and IT and network technologies firm NEC India, but the discussions are now moving towards possible closure with L&T Infotech emerging as the frontrunner, the report added.

On a consolidated basis, Polaris Financial Technology's net profit fell 1.46% to Rs 43.20 crore on 5.24% rise in net sales to Rs 583.82 crore in Q1 June 2013 over Q4 March 2013.

Polaris Financial Technology is a global leader in financial technology for banking, insurance and other financial services.

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