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Polaris-Orbitech swap changed

Our Bureau

CHENNAI, Oct. 26

THE swap ratio in the Polaris Software Lab Ltd and Orbitech Solutions merger has been changed.

As per the new agreement announced after Polaris' board meeting here on Saturday, for every 100 shares of Orbitech, 42.65 shares of Polaris will be issued.

As per the merger agreement signed between the two companies this May, OrbiTech shareholders were to receive 14 newly issued Polaris shares for every 25 shares they held in OrbiTech.

Following the new agreement, Polaris shareholders would own 52.75 per cent in the merged entity while OrbiTech shareholders will have 47.25 per cent, said Mr Arun Jain, Chairman and Managing Director, Polaris Software Labs. This is compared to 46 per cent in favour of Polaris and 54 per cent in favour of OrbiTech shareholders as per the earlier agreement signed in May.

"It is a better valuation in favour of Polaris. The merger with OrbiTech is on," he told Business Line.

Net down: Meanwhile, Polaris reported a consolidated net profit of Rs 9.27 crore on a total income of Rs 76.7 crore for the second quarter of this year against a net profit of Rs 15.58 crore on total income of Rs 76.49 crore for the same period last year.

Mr Arun Jain said while there had been healthy growth in revenues, the profit after tax had shown a slight dip. "There has been charges incurred in the strengthening of our global sales and marketing network have had an impact on this quarter's PAT."

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