Polaris Consulting & Services turns red on commencement of OFS

Polaris Consulting & Services’ promoter offer-for-sale (OFS) commenced on Thursday. The company has fixed a floor price of Rs 130 per share for the offer. The share price of the company declined 10.89 per cent on the bourses in early trades and was trading at Rs 144 on intra-day basis. Its share price had touched 52-week low of Rs 141.1 on 9 November, 2016. Polaris Consulting & Services’ promoter has set floor price below the company’s 52-week low levels.

Virtusa Consulting Services, the promoter of Polaris Consulting & Services, has proposed to make an OFS of 1.89 million equity shares and a green shoe option of another 1.89 milllion shares. It represents about 1.86 per cent (without green shoe option) of the equity share capital of the company.

On the financial front, Polaris Consulting & Services’ revenue declined 3.2 per cent to Rs 1002 crore in H1FY17 as compared to the same period in the previous fiscal. The company’s EBITDA declined 19.08 per cent to Rs 120 crore in H1FY17 on a yearly basis. Its net profit also dropped 13.76 per cent to Rs 80.87 crore in H1FY17 on YoY basis.