Polaris Financial Technology on Tuesday said that it's board has given their in-principle approval for demerging of its Products (Intellect) business into an independent entity called Intellect Design Arena Ltd.
“The Board of Directors of the Company at its meeting held on March 18, 2014, have given their in-principle approval for demerging the Products Business Undertaking of the company into a separate Listed Company,” the company said in a BSE filing.
“The scheme/structure is subject to the approval by the various regulatory authorities like stock exchanges, SEBI, Madras High Court, Registrar of Companies, shareholders and creditors,” it added.
“After demerit the product company will be known as Intellect Design Arena Ltd (Intellect) and comprise of four distinct businesses – Global universal banking; risk and treasury management; global transaction banking and insurance,” Polaris Financial technologies said in a separate release.
“Polaris will continue to run the Services Business with a strong vertical and solution focus,” it added.
The company said that it has decided to offer a special option to the shareholders of Intellect – as per the recommendations made by a Special Committee comprising of independent directors of the Board as well as the Audit Committee – 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 annum, redeemable at par after 90 days,” it added.
The scrip of Polaris Financial Technology closed 11.57 % up at Rs 152.80 on the BSE on Tuesday.