Parrys Sugar locked in lower circuit after setting swap ratio for merger with EID Parry

Parrys Sugar Industries was locked in lower circuit of 5% at Rs 55.55 on the BSE after the board of directors of the company approved the scheme of amalgamation of Parrys Sugar Industries with EID Parry. Parrys Sugar is a listed subsidiary of EID Parry.

The board also decided to fix the merger swap ratio at 2:13 i.e. shareholders of Parrys Sugar will receive two equity shares of Re 1 each of E.I.D. Parry for every 13 equity shares of Rs 10 each they hold.

The appointed date of merger is April 1, 2016. The exchange ratio for the merger has been determined on the basis of a valuation report provided by SSPA & Co and Fairness opinion provided by Axis Capital, Parry Sugar said in statement.

The amalgamation would result in greater integration and greater financial strength and flexibility for the amalgamated entity, which would result in maximizing overall shareholder value, and will improve the competitive position of the combined entity, it added.

Post March 2016 quarter results, the stock of Parrys Sugar had rallied 40% from Rs 41.75 on April 29, to Rs 58.45 on Tuesday.

Till 09:30 am, a combined 18,169 shares changed hands and there well sell orders for 79,448 shares on the BSE and NSE.

EID Parry (India) was down 1.5% at Rs 231 after hitting a low of Rs 228 on the BSE in early morning trade.