According to the issue lead manager Keynote Corporate Services; the offer could only mop up 0.46 per cent of Ficom stocks against the proposed 24 per cent. The offer, which opened on May 13 and closed on June 1, did not have any minimum subscription limit.

The offer price of Rs 15.85 was at a substantial discount to Ficom's traded price till a week back. FOL stock had a 52-week high of Rs 35.35 and was trading at Rs 18 levels. The stock closed on The Stock Exchange, Mumbai at Rs 16.15 on Wednesday.
However, Coromandel had fixed the offer price based on average price formula as per the Sebi norms. Subsequently, the post offer stake of Coromandel now stands close to 51 per cent instead of the proposed 74 per cent.

The Murugappa group fertilisar company came out with the open offer for Ficom shares after it signed a share purchase agreement with the promoters to buy 50.27 per cent equity in the company at a price of Rs 5 a share as per Sebi regulations.

Coromandel has decided to buy the majority stake in the company as per its strategy to increase its technical grade pesticide capacity.

With the acquisition of Ficom, Coromandel could now expand its capacity to produce the pesticides technical grades to include Malathion, Phortate, Quinalphos, Terbufos and Temiphos. Since FOL's Ankaleshwar unit is in a chemical zone, expansion of product ranges could go without any glitches.

Incorporated in 1979, FOL was promoted by HL Financials Consultants and Management Services Ltd. FOL commenced commercial operation in 1981-82 and its product range includes agrochemicals, malathion technicals etc. FOL has its manufacturing facility at Ankleshwar, Gujarat. Ficom is a loss making company with a turnover of Rs 66 crore. Coromandel is a subsidiary of Murugappa group flagship EID Parry Ltd. It has clocked a turnover of Rs 1,554 crore as of March last and a net profit of Rs 69.19 crore.