Shares of Polaris Financial Technology today climbed 15 per cent after the company announced the demerger of its products business into a separate listed company.
At the NSE, the scrip zoomed 15.03 per cent to close the day at Rs 158.
The IT firm's scrip ended the day 11.57 per cent higher at Rs 152.80 on the BSE. During the day, the stock surged 17.26 per cent to Rs 160.60.
"The Board of Directors of the company at its meeting held on March 18, 2014, have given their in-principle approval for demerging the products business undertaking into a separate listed company," said Polaris Financial Technology in a filing to the BSE.
The scheme/structure is subject to the approval by the various regulatory authorities like stock exchanges, SEBI, Madras High Court, registrar of companies, shareholders and creditors.
After demerger and subject to approval from regulatory authorities and shareholders, the product company will be known as Intellect Design Arena Ltd (Intellect) and comprise of four distinct businesses : Global Universal Banking, Risk and Treasury Management, Global Transaction Banking and Insurance.
Polaris Financial Technology Ltd (Polaris) will continue to run the services business with a strong vertical and solution focus.
