VLL had acquired about 37.76 per cent from FDCL's managing director A Prabhakar Reddy. Currently, VLL is owned by non-resident Indians and overseas corporate bodies which have acquired the shares from the original promoters, while 30 per cent of the stake in the company is held by Vidyut Investments Ltd, a wholly-owned subsidiary of Ranbaxy Laboratories Ltd.Recently, VLL had entered into an in-principle agreement to buy 23,73,524 equity shares of FDCL at a predetermined price of Rs 4 per share from Reddy and associates. Prior to this agreement, VLL did not hold any equity in FDCL.VLL has appointed SMIFS Capital Markets Ltd as manager to the open offer, which will open on May 14, 1999, and close on June 12, 1999. It has fixed March 26 as the cut-off date to be eligible to participate in this offer. However, forinvestors holding blank transfer deeds and whose shares are pending with the company for transfer also become eligible for the offer, the notification said.

The open offer is to buy 20 per cent of the paid-up equity capital of FDCL amounting to 12,57,200 shares at a price of Rs 4 per share which is equal to the negotiated price. The ailing FDCL has a paid-up equity capital of Rs 6.28 crore and is engaged in manufacturing bulk drugs.