Polaris Financial Technology extended gains and advanced 13% to Rs 173 after the company announced the demerger of its Products (Intellect) business into an independent entity 'Intellect Design Arena Ltd (Intellect), with a focus on Global Universal Banking; Risk and Treasury Management; Global Transaction Banking and Insurance businesses.
In intra-day trades, the stock traded at a new 52-week high of Rs 173.25 with a spurt in volume by more than 6.28 times.
The new entity is expected to double its business in the next three years from the current around $100 million. The growth will be backed by around Rs 100 crore in R&D and another $10 million in sales.
Last two quarters, the company tested and results were positive, so the company decided to demerge, which the company describes as Vertical Split.
The stock opened at Rs 157.50 and briefly dipped to a low of Rs 150.15 in morning trades.
