abhishreshthaa
Abhijeet S
CASE STUDY: PARRY AGRO INDUSTRIES LIMITED
OFFER:
NEED FOR BUY BACK
- PAI was incorporated on September 24, 1977.
- Subsequently the name was changed to Parry Agro Industries Limited on January 21, 1993.
- PAI, is a Murugappa Group company and has seven tea estates in South India and one in Assam with a planted area of 3275 Hectares of tea and 570 Hectares of coffee in Karnataka.
OFFER:
- To buyback fully paid-up equity shares of face value Rs.10 each through a Tender Offer in accordance with the Companies Act 1956 and the SEBI regulations, 1998.
- Offer to buyback a maximum of 8,67,472 shares at a price Rs.70 per equity share, payable in cash.
- Total amount to be expended towards buyback by the company aggregates to Rs.607.23 lakhs.
- This amount represents 8.68 % of the aggregate of the company’s paid up share capital and free reserves.
- Maximum number of shares to be bought back i.e. 8,67,472 shares, represent 23.09% of the paid up equity capital of the company.
- After the buyback process is completed the company intends to delist the equity shares from all stock exchanges, where they are presently listed.
NEED FOR BUY BACK
- Presently the trading volumes of the shares of the Company are relatively low.
- The rationale behind listing is to provide liquidity to the shareholders by enabling them to buy/sell the shares on the Stock Exchanges.
- Such liquidity is presently not available to the shareholders of the Company due to lack of active trading in the shares.
- The Company intends to provide liquidity to the existing shareholders and thus provide them an exit route.