Polaris Financial Technology surged 13.33% to Rs 163.70 at 13:42 IST on BSE after the company clarified that it is not planning to sell a stake in the company.
The company issued the clarification during trading hours today, 26 February 2014.
Meanwhile, the BSE Sensex was up 110.02 points, or 0.53%, to 20,962.49.
On BSE, so far 33.93 lakh shares were traded in the counter, compared with an average volume of 1.26 lakh shares in the past one quarter.
The stock hit a high of Rs 164.90 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 143 so far during the day. The stock hit a 52-week low of Rs 96.10 on 14 May 2013.
The stock had outperformed the market over the past one month till 25 February 2014, rising 7.52% compared with the Sensex's 1.33% fall. The scrip had also outperformed the market in past one quarter, rising 10.39% as against Sensex's 1.20% rise.
The small-cap company has an equity capital of Rs 49.77 crore. Face value per share is Rs 5.
With reference to the news item appearing in the media regarding "US based Fiserv in talks to acquire stake in Polaris", Polaris Financial Technology clarified that during the company's third quarter results in January 2013, the board of directors authorised the management team to explore options that would provide an impetus to the company for the next stage of its growth. the context was around leveraging untapped potential in our growth engines i.e. services, products and the canvas of opportunities that are available to us as a leading specialist in the global financial technology arena.
In line with the stringent governance principles the company follows, stakeholders have been updated on progress. As announced, the major legs of the restructuring process have been completed last quarter in Q3 December 2013, the company said in a statement.
With its singular focus on banking & financial technology for over 2 decades, Polaris said it has built very robust and comprehensive assets to spearhead transformational projects for the BFSI vertical.
The restructuring exercise has been misconstrued by a certain section of stakeholders with repeated mention of possible sale. Despite the company clarifications, these rumours continue to surface, impacting customer relationships, distracting management and employees, the company said.
Polaris clarified that is not for sale. The company said it is poised to leverage its rich assets in banking and technology to accelerate growth of its two distinct businesses - products (intellect) business and IT services business.
According to a media report, US-based Fiserv is in talks to acquire Polaris, adding that due diligence is in final stage and valuation is being worked out. According to the report, Fiserv is eyeing both services and product businesses of Polaris.
As on 31 December 2013, promoters held 29.13% stake in Polaris Financial Technology.
On a consolidated basis, Polaris Financial Technology's net profit fell 15.13% to Rs 50.76 crore on 0.68% growth in net sales to Rs 614.24 crore in Q3 December 2013 over Q2 September 2013.
Polaris Financial Technology is a global leader in financial technology for banking, insurance and other financial services.
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