Virtusa Consulting buys shares worth Rs 1,016 cr through bulk, block deals

Virtusa Consulting Services Private Ltd has bought shares worth over Rs 1,016 crore in Polaris Consulting through block and bulk deals in the Bombay Stock Exchange (BSE).

Accoridng to BSE bulk deals data ,the US-based company bought 47,679,077 shares at Rs 213.1 a share. Similar number of shares where reflected in the block deal data also.

The sellers include Orbitech Pvt Ltd (sold 17,458,692 shares), Yogesh Andlay (2,077,447 shares), Uday Jain (619,500 shares), Polaris Banyan Holding Pvt Ltd (20,020,938 shares), Orbitech Employees Welfare Trust (900,000 shares), Manju Jain (910,52,460 shares), Arun Jain HUF (789,000 shares) and Arun jain (43,22,365 shares). All of them sold the shares at Rs 213.1 a share.

The transaction comes in the backdrop of regulators, including RBI and CCI, giving their nod for Polaris Consulting and Virtusa Consulting Share Purchase Agreement (SPA). In November 2015, US-based IT outsourcing firm Virtusa Corporation has acquired to acquire majority stake in Polaris Consulting in a $270 million deal.

On Friday in an announcement to the Exchange, Polaris said that it has got RBI approval on February 5, CCI's approval on February 18 and Sebi's approval on February 23 for the SPA.

With the regulatory approvals in place, the transaction is expected to complete in around two weeks, said Arun Jain, who has been the promoter of Polaris Consulting Services Ltd (PCSL). Following the transaction, he would also step down from the position of Chairman of PCSL.

On November 5, Polaris' promoters, including Arun Jain, announced an agreement with US-based Virtusa under which the latter's subsidiaries were to acquire 53 per cent stake for Rs 1,173 crore, with a further intention to raise this to 75 per cent.

promoter sellers of Chennai-based IT service provider Polaris Consulting & Services Ltd, including its founder and chairman Arun Jain, would get around Rs 639.80 crore out of the deal announced on Thursday. Virtusa has entered into a definitive Share Purchase Agreement (SPA) to acquire around 53 per cent of Polaris from certain promoter and promoter entities led by Arun Jain and certain other shareholders for around Rs 1,173 crore, through a subsidiary.

From the promoter's family, while Arun Jain and his family will benefit the most, outside investor Rakesh Jhunjhunwala, who held 50 lakh shares in the company, will be getting Rs 110.36 crore. This is more than what Jain, who founded the company will be getting individually, with 43.22 lakh shares.