Thanks to the current spurt, the open offer to the shareholders of Fine Drugs and Chemicals at Rs 4 is way below the current market price. While the offerer, Vorin Laboratories (VLL), is willing to pick up each equity share at Rs 4 from the public shareholders, the share is currently hovering around Rs 8.7. The stock was trading at Rs 1.25 on March 16 and in the following trading session on March 22, the scrip zoomed to Rs 6.25. On March 23, the stock further touched a high of Rs 9.1 and closed the day at Rs 8.7 with a volume of 4,800 shares against the previous day's volume of 500.

The open offer follows VLL's deal with Prabhakar Reddy and associates for picking up 23.73 lakhshares at a price of Rs 4. This represents 37.76 per cent stake in Fine Drugs. VLL offers to pick up 12.57 lakh shares, representing 20 per cent, from the shareholders.

VLL with a paid up capital of Rs 6.2 crore is engaged in the business of bulk drugs and intermediates. VLL is a profit making and dividend paying company.

For the six-month period of the current fiscal, the company recorded a net profit of Rs 1.36 crore on a turnover of Rs 39.73 crore. Fine Drugs, with a paid-up capital of Rs 6.28 crore, manufactures bulk drugs. On a turnover of Rs 5.32 crore, Fine Drugs has incurred a net loss of Rs 2.14 crore for the year ended March 31, 1998. For the nine-month period ended December 31, 1998, the company incurred a net loss of Rs 2.71 crore on a turnover of Rs 4.82 crore. The offer opens on May 12 and closes on June 12.