Polaris in the limelight

Polaris Consulting & Services is a big gainer on the BSE currently. Hitting an intra day high at Rs.224, it seemed as though its 52-week high of Rs.235.19 was much within reach. Volumes are good at almost 4.5 lakh trades less than an hour of trading compared to around 3 lakh shares over two week average.

The stock is in the limelight following unconfirmed news reports that its promoter and founder, Arun Jain and other key investors have once again opened the door to sell their entire controlling stake in the company.  There are some major tech companies showing interest but no one name has been singled out. Earlier Tech Mahindra has been so close to acquiring the company but at the last moment Jain had changed his mind.

Currently as the per the shareholding pattern given, Jain holds 28.95%, The Rohatyn group (TRG) holds 18.57%. FIIs hold a total of 22.02% stake. Rakesh Jhunjhunwala holds 4.74%. Grapevine has it that Jain and TRG will exit but their exit is sure to trigger off an open offer for additional 26% stake.

It is said that Polaris is getting offers in the range of Rs.275 to Rs.325/share and that is at over 30-50% premium to the current market price.