The extra-ordinary general meeting (EGM) of the Chennai-based Parry Agro Industries Ltd, part of the Rs 3,900-crore, well diversified Murugappa Group of companies held here on Friday, has approved the proposal for buy back of upto 8,67,472 fully paid equity shares of Rs 10 each, aggregating 23.09 per cent of the total equity share capital of the company at a maximum price of Rs 70 per share. Following the shareholders’ approval, the director board has also confirmed the buyback price of Rs 70 per share.

The EGM follows an earlier decision by promoters to buy back the floating stocks from the market at a price of Rs 70 per share and subsequently delist the company from stock exchanges. The company has notified the stock exchanges concerned about the decision. Parry Agro is listed on the BSE, Madras Stock Exchange and the Cochin Stock Exchange.

Company sources had earlier said “the move came in the wake of the promoters decision to buy back the remaining floating shares from the market at a premium”. As per the plan, promoters would offer Rs 70 per share to the public and others to buy back the shares. The company has arrived on the offer price, based on the assessment done by the authorities concerned.

The promoters are holding close to 77 per cent in the venture, while others are holding 23 per cent stake. Parry Agro shares are not actively traded on the bourses.

The company which is into the business of plantations especially tea plantations, was incorporated in 1977.

Meanwhile, the company has reported a net loss of Rs 57 lakh for the third quarter ended December 31, 2001 as against a net loss of Rs 2.08 crore during the corresponding period of the previous year. Net sales stood at Rs 20.77 crore against to Rs 21.59 crore for the previous yeart.