The Ipca scrip closed at Rs 123.25 on Thursday on the Bombay Stock Exchange. The scrip shot up from Rs 105.45 on May 28 to touch a high of Rs 132.45 on June 29 on the BSE. On the NSE, the stock moved up from Rs 106.95 on May 28 to touch Rs 126 on June 28 but closed lower at Rs 124.30 on Thursday.

The stock witnessed large volumes on both bourses on June 28. Combined volumes shot up to touch 2.06 lakhs compared with 39,400 on May 28.

Ipca Labs managing director Premchand Godha told The Financial Express

, ``As of date, we are not looking at any such equity alliance,'' but added that the company had been approached by certainmerchant bankers, though unsuccessfully, on behalf of potential suitors. Novartis' official spokesperson said that the company does not comment on market rumours.

Industry analysts claim that a British multinational had, several months ago, looked at Ipca Laboratories seriously though the additional labour force that could come as part of any proposed deal was not viewed favourably. ``Ipca has since rationalised its manufacturing facilities, though potential buyers continue to be wary of additional baggage. However, buying out Ipca brands may be more attractive,'' an analyst with a leading Indian broking firm said.

Ipca Laboratories, which registered sales of Rs 292 crore in 1997-98, is a significant player in the anti-malarial and cardiovascular segments with key brands like Lariago, Laridox, Amodiaquine tablets, Lisoril, Tenoric and Tenofed. The company also has strong supply arrangements with SmithKline Beecham, UK for specific formulations and American multinational Merck for certain bulks.

Analystsexpect the company to register a topline growth of 25 per cent in the fiscal 1999-2000. The company is also planning to increase its sales force by 40 per cent in the current fiscal to handle a slew of new products slated for launch, said a fund manager.

Ipca Laboratories is controlled by promoter managing directors, Premchand Godha and MR Chandurkar, who hold roughly 18 per cent each of the company's equity capital. Filmstar Amitabh Bachchan had earlier divested his holding in the company, besides exiting associate company Makers Laboratories.