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T.E. Raja Simhan

Co's strategy totally focussed in a different direction: Chairman

MR ARUN JAIN, CHAIRMAN AND CEO

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Chennai Feb. 3 The Chairman of Polaris Software Ltd, Mr Arun Jain, has reiterated that promoters do not plan to sell their stake in the company even if the valuation is good.

As on December 31, 2006, the promoters and promoters' group held 27.86 per cent stake in Polaris.

Mr Jain's comments in a conference call with financial analysts come in the wake of market rumours for the last few months that many companies, including IBM, are looking out to buy Polaris.

"We have told earlier that the promoters will not sell out," he told analysts, while discussing the company's December quarter financial results.

Mr Jain said, as of now the strategy is totally focused in a different direction, which a large company will not be able to drive.

"Definitely, we need to drive our strategy with our leadership team, so unique and so differentiated that is not available in the world," he said.

Valuation

Mr Jain said when the company's valuations are lower than its actual value, it is a target for acquisition.

Whenever somebody does the scanning for target acquisition they search for such companies, where post-acquisition they fetch a better value.

The number of relationships, accounts and Intellect (Polaris' product) assets, is recognised by the acquirer as assets, which the investor does not.

The investor recognises the quarterly result while the acquirer recognises the company's inherent potential, and that the company's intrinsic potential is definitely far higher than what is being available at the market place, he said.

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