Polaris slumps 8% on Citigroup stake sale buzz

MUMBAI: Shares of Polaris Software slumped nearly 8 per cent after meltdown hit Citigroup is believed to dump its 40 per cent stake in the Chennai-based financial software firm.

Citigroup holds 22.88 per cent directly and its wholly-owned subsidiary, Orbitech, owns another 20.45 per cent. Collectively, Citi holds a little over 43 per cent stake in Polaris. According to media reports, its potential buyers include IBM and Wipro. However, IT analysts expect TCS, which had acquired Citigroup's BPO arm last month, to join the race.

At 10:30 am, the stock lost 7.74 per cent to Rs 34.55 in early trade with volume traded at 89006 against two-week average of 107291 shares.