Polaris shares surge 17pc on demerger plan

Polaris Financial Technology shares jumped as much as 17 per cent on Tuesday after the outsourcer announced a demerger of its products business into a separate listed company.
Chennai-based Polaris said the product-based company will be called Intellect Design Arena and every shareholder of Polaris Financial Technology will receive one share of Intellect post the demerger.
Shareholders of Intellect can exchange their shares post demerger for fully secured non-convertible debentures (NCD). These NCDs will have a face value of Rs. 42, a coupon of 7.75 per cent per annum and will be redeemable at par after 90 days, the company said.
The demerger or vertical split was done because the product business is significantly different from the services stream in terms of investments into product development, talent and sales & distribution, the company said.
Polaris Financial Technology closed 11.5 per cent higher at Rs. 152.80 on the BSE, outperforming the broader Sensex, which ended with 0.1 per cent gains.