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Polaris rules out Citi stake sale

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Our Corporate Bureau Chennai
Last Updated : Feb 06 2013 | 7:14 AM IST
Citigroup will not offload its 43.62 per cent stake in Polaris Software Ltd, a financial software services and products company.
 
Arun Jain, chairman and CEO, Polaris Software, said, "Citigroup has not been in talks to sell its stake." If Citigroup has to sell its stake, it will have to first offer it to the promoters of Polaris, based on the first right of refusal.
 
A month ago there were media reports saying that EDS was eyeing Citigroup's stake of 43.62 per cent in Polaris. Jain said it was pure speculation and untrue.
 
"At this juncture, Citigroup will not exit from Polaris, as the software company has invested about Rs 100 crore in its service oriented architecture and made additional investments in its BPO which will take time to earn returns," he added.
 
Polaris Holding has 18.93 per cent stake and Arun Jain holds 3.12 per cent in Polaris Software. Citibank NA (as nominee of Orbitech Ltd) holds 23.03 per cent stake in Polaris, while it holds another holds 20.9 per cent through Orbitech Ltd. Orbitech Ltd, is a BPO company of Polaris which was merged with it in 2002.
 
Citigroup had recently sold its stake in the Mumbai-based i-flex Solutions to Oracle.
 
Polaris Software reported a 46.20 per cent fall in net profit of Rs 12.96 crore in the first quarter of 2005-06 compared with Rs 24.09 crore for the same period, last year. Income from operations during the same period was Rs 209.38 crore, 16.58 per cent higher than the Rs 179.59 crore recorded the previous year.

 
 

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First Published: Sep 28 2005 | 12:00 AM IST

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