Polaris Slumps 19% as the Stock Goes Ex-Demerger Today

Shares in Polaris Financial Technology slumped over 19 per cent to Rs 200 on Thursday as the stock goes ex-demerger today.

The Chennai-based software solutions firm had earlier announced the demerger of its products business into a separate entity called Intellect Design Arena and the scheme of arrangements had already been sanctioned by the Madras high court.

At that time, the company had said the demerger was a part of its growth strategy that was put in place after it had restructured itself into two main divisions-services and products-in May 2012.

Under the scheme of demerger shareholders of Polaris will be allotted one share of the resulting company Intellect Design Arena for every one share held in Polaris Financial Technology.

Those shareholders, whose name is recorded in the register of member and records of the depository (NSDL/CDSL) as member of the Polaris Financial Technology as on October 10, will be allotted 1 new equity share in Intellect Design Arena for every one equity share held in Polaris.

Polaris shares are witnessing selling pressure as existing shareholders are already entitled for shares of Intellect Design Arena even if they sell their shares today.

Shares of Polaris had hit a one-year high of Rs 278.20 on September 23.

As of 10.46 a.m. shares in Polaris Financial Technology traded 15 per cent lower at Rs 210 a piece outperforming the Nifty which was up 1.13 per cent.