CASE STUDY: PARRY AGRO INDUSTRIES LIMITED
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.
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.
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.
DETAILS OF PUBLIC ANNOUNCEMENT
As per the Sebi regulations, the company has made a public announcement in the following newspapers on January 31, 2002.
Newspaper Language
Business Standard English
Kerala Kaumudi Malayalam
Jansatta Hindi
DETAILS OF ESCROW ACCOUNT
The Company will open an Escrow Account, before the opening of the Offer, in accordance with Regulation 10(2) of the Regulations in the form of cash deposit of Rs. 1,51,80,760 being 25% of the total consideration payable under the Offer with a Scheduled Commercial Bank.
Maximum number of equity shares permitted to be bought back is 9,39,204 representing 25% of the total paid-up capital of the Company i.e. 37,56,816 equity shares of Rs. 10/- each.
Maximum amount permissible for buyback i.e. 25% of the total paid up capital & free reserves is Rs.11,63,25,000
Maximum number of shares to be bought back i.e. 8,67,472 shares, representing 23.09% of the total paid up equity share capital of the Company.
Maximum Buyback amount is Rs.6,07,23,000 which is 13.05% of the aggregate of the Company’s paid up capital & free reserves.
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.
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.
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.
DETAILS OF PUBLIC ANNOUNCEMENT
As per the Sebi regulations, the company has made a public announcement in the following newspapers on January 31, 2002.
Newspaper Language
Business Standard English
Kerala Kaumudi Malayalam
Jansatta Hindi
DETAILS OF ESCROW ACCOUNT
The Company will open an Escrow Account, before the opening of the Offer, in accordance with Regulation 10(2) of the Regulations in the form of cash deposit of Rs. 1,51,80,760 being 25% of the total consideration payable under the Offer with a Scheduled Commercial Bank.
Maximum number of equity shares permitted to be bought back is 9,39,204 representing 25% of the total paid-up capital of the Company i.e. 37,56,816 equity shares of Rs. 10/- each.
Maximum amount permissible for buyback i.e. 25% of the total paid up capital & free reserves is Rs.11,63,25,000
Maximum number of shares to be bought back i.e. 8,67,472 shares, representing 23.09% of the total paid up equity share capital of the Company.
Maximum Buyback amount is Rs.6,07,23,000 which is 13.05% of the aggregate of the Company’s paid up capital & free reserves.