 "Virtusa to acquire majority stake in Polaris for Rs 1,173 cr")
The promoters of Chennai-based IT service provider Polaris Consulting & Services, including its founder and chairman Arun Jain, would get about Rs 639.80 crore from the sale of the company. The deal was announced on Thursday. Virtusa has entered into a definitive share purchase agreement to acquire about 53 per cent of Polaris from the promoters and other shareholders for about Rs 1,173 crore, through a subsidiary.
Jain and his family will benefit the most from the deal. Outside investor Rakesh Jhunjhunwala, who held five million shares in the company, will be getting Rs 110.36 crore. This is more than what Jain, who founded the company will be getting individually, for 4.32 million shares.
According to Virtusa’s filing to the US market regulator, acquisition consideration to the promoter, Jain, and the promoter-led family will be Rs 639.80 crore. These include Rs 441.92 crore for Polaris Banyan Holdings Pvt Ltd, owned by Arun Jain, Rs 95.40 crore to Arun Jain, Rs 23.23 crore to Manju Jain (Jain's wife), Rs 17.41 crore for Arun Jain (HUF), Rs 13.67 crore for Uday Jain (son) and Rs 1.32 crore for Aarushi Jain (daughter).
While other eight promoter-sellers, promoter-led family members, would make around Rs 97.23 lakh, Yogesh Andlay, one of the earlier promoters of Polaris, will be getting Rs 45.85 crore from this transaction.
To the investor sellers, the sale of shares will fetch an amount of Rs 385.36 crore.
Finally, among the other sellers, the major beneficiary would be Rakesh Jhunjhunwala. He would be getting Rs 110.36 crore for his stake in the company. Followed by Arun Sekhar Aran (Rs 9.68 crore), Konark Trust (Rs 3.31 crore), Orbitech Employees Welfare Trust (Rs 19.86 crore) and Amit Goela (Rs 4.41 crore).
