In a strategic move to access AIG (American Insurance Group) for its IT outsourcing business, Chennai-based Polaris Software Lab today sold its stake in AIG SS, one of the AIG Group companies, for Rs 23.26 crore. Polaris was a joint venture partner in AIG SS, holding a 20 per cent stake.
With the completion of the deal, Polaris will now be able to access all IT service needs of AIG and its subsidiaries by competing with other IT service companies on an even platform.
The deal will also give a boost to Polaris’ bottom line this year. Polaris had entered into a joint venture with AIG in 2002 to own a 20 per cent stake in AIG SS for Rs 3.26 crore.
The sale leaves Polaris with a profit of Rs 20 crore on the sale of investment on a standalone basis and Rs 13.21 crore on a consolidated basis, said a company executive.
The profit will be reflected in the current quarter’s results and will be over and above the 10 per cent growth in profit given in its latest guidance call for the quarter, said R Srikanth, chief financial officer, Polaris.
