Company is Not for Sale: Polaris FT Executive Chairman - The New Indian Express

Company is Not for Sale: Polaris FT Executive Chairman

Published: 26th February 2014 05:12 PM

Last Updated: 26th February 2014 05:12 PM

Re-iterating that the company is not for sale, IT firm Polaris Financial Technologies (FT) today said it is focused on accelerating growth across its products and services business.

"I am telling you as the Chairman... the company is not for sale. Such rumours are doing a lot of damage. Our relationship with clients and employees is getting impacted because of these rumours," Polaris FT Executive Chairman Arun Jain told PTI.

He sought to clarify reports surfacing over the past few months suggesting the company planned to sell its business.

"During our Q3 results in January 2013, the management team was authorised to explore options as to how we can reach the next stage of growth. This would include areas like services, products and others," he said.

Jain added that Polaris has maintained a singular focus on banking and financial services for the past two decades and has established assets to spearhead transformational projects in the BFSI segment.

"The restructuring exercise has been misconstrued by 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 Chennai-based company said in a statement.

Polaris scrips rose by 14.05 per cent to settle at Rs 164.75 apiece on the BSE today.

"Polaris is not for sale. The company 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," the statement said.

In May last year, Polaris announced plans to restructure its business into separate Services and Products divisions having independent management teams and strategies.

The company divided its offerings into distinct line of business across Services and Products -- Services, Global Transaction Banking, Core Banking & Treasury & Capital Markets and Insurance Products.

The company further said in the statement: "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 in the last quarter (Q3 2014)."

For the October-December 2013-14 quarter, the company reported a growth of 25 per cent in its net profit at Rs 51 crore year-on-year. Revenues rose by 12 per cent to Rs 643 crore y-o-y.

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