Polaris Gets Board's Nod to Delist

Virtusa Consulting Services Pvt Ltd currently holds 74.40% in the company

Polaris Consulting & Services Limited has said that the Board of Directors has approved its delisting proposal. 

The meeting was held on Tuesday after the public shareholders received a delisting proposal for acquiring 26,172,715 equity shares of the company, each worth Rs 5. The total number of shares offered represents 25.60 per cent of the company's stocks held by public shareholders.

The Board also approved the appointment of Yes Securities as the merchant banker for carrying out due diligence for the delisting.

Virtusa Consulting Services, the company's new promoter, said that it would help them to provide enhanced operational flexibility.

In March 2016, Virtusa Corporation had acquired a majority interest in Polaris Consulting Services Ltd, which was promoted by Arun Jain.

The company said that the delisting proposal, if successful, would provide an exit opportunity to the public shareholders.

In a note to the stock exchange, the company said the objective of making the delisting offer is to enable the promoter group to obtain full ownership of the company, which would give them enhanced operational flexibility.

The promoter group will benefit from the company being no longer publicly listed in India. The delisting will help the company save costs and reduce management time needed to comply with requirements associated with the continued listings. This will help the promoter group focus on the company's business.

Virtusa Consulting Services Pvt Ltd currently holds 74.40 per cent in the company.

 

Reference - http://www.business-standard.com/article/companies/polaris-gets-board-s-nod-to-delist-117103101567_1.html