IT products and services firm Polaris Financial Technology (Polaris) on Tuesday announced demerger of its products business into an independent entity called Intellect Design Arena (Intellect) subject to regulatory approvals.
In a statement, Polaris said that it will file the Scheme of Demerger with the stock exchanges, Sebi and High Court as per extant regulations. After demerger and subject to approval from regulatory authorities and shareholders, Intellect) and comprise of four distinct businesses: Global Universal Banking; Risk and Treasury Management; Global Transaction Banking and Insurance. Polaris will continue to run the services business with vertical and solution focus.
As consideration for the demerger, every shareholder of Polaris will receive one share of Intellect.
The product business is significantly different from the Services stream, in terms of investments into product development, talent and sales & distribution.
Given this, the Polaris Board, taking into consideration the recommendations made by the Special Committee comprising of independent directors of the Board as well as the Audit Committee, has decided to offer a special option to the shareholders of Intellect to exchange the shares (should they wish to) allotted pursuant to the demerger against fully secured non-convertible debentures (NCD).
These NCDs shall have a face value of Rs.42 with a coupon of 7.75 per cent per annum, redeemable at par after 90 days,the company said.
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