The merged entity - Strides Arcolab - would have a combined turnover of Rs 130 crore during the next fiscal. The merger would not see any major change in the core business of the group, but it would help focus on expansion of its pharmaceutical business in India and abroad.

According to marketmen, Plama Laboratories had informed stock exchanges across the country about the approved scheme of amalgamation whereby Plama Laboratories Ltd and Remed Laboratories Ltd are merging with Strides Arcolab Ltd.

The bourses have also reacted positively to the merger move with the Plama scrip touching Rs 45.85, very close to the 52-week high of Rs 46 on BSE on Tuesday. On Tuesday, the scrip opened at Rs 44.10, while the traded volume was 2,800.

Withover 16,000 shares changing hands, the Plama scrip on September 9 was hovering at Rs 34.50 against a 52-week high and low of Rs 40 and Rs 3 respectively at BSE before reaching the Rs 46 mark during the third week of September.

From a low of Rs 32.20 in the first week of September the Plama scrip closed at Rs 47.90 on the Bangalore Stock Exchange on Tuesday. On BgSE the 52-week high of the scrip was Rs 38 on September 6.

Earlier, the group had received the required approvals from the State Bank of India and IDBI for the merger. ``We are planning to expand our business in a big way. With a strong balance sheet, the merged entity will be able to raise funds from leading financial institutions,'' a top Strides official said.

Established in 1990-91, Srides has marketing and equity support from Arcolab SA of Geneva, technical and equity support from Remed SA of Belgium and an advanced soft gelatine technical support from Pharmagal Engineering Srl of Italy on an exclusive basis.

The exchange ratio of 1 shareof Strides Arcolab Ltd for every 8 shares of Plama Laboratories Ltd and 2 shares of Strides Arcolab Ltd for every 3 shares of Remed Laboratories India was announced by the board of directors of the companies in September 1996.