The Glol scrip, which was hovering in the region of Rs 12 in early September, has appreciated by over 146 per cent to close at Rs 29.55 on Tuesday on the BSE. Volumes at the counter touched 69,400 on Monday, but fell to 41,900 on October 12.

Market sources say the proposed Glol-Sun Pharma merger swap ratio may be in the region of 20:1, though experts feel based on current market prices this could be significantly altered. Sun Pharma's official spokesperson, however, maintained the BIFR had not yet completed the proceedings. ICICI has been appointed as the operating agency.

Sun Pharma holds 35.64 per cent stake in Glol, while group investment firms account for another 20 per cent of the company's capital. The group's efforts to consolidate its holding in Glol through an interse transfer among promoters had earlier not found favour with the Securities & Exchange Board of India (Sebi)--the regulator had insisted on an open offer--though the latest on this front could not be ascertained.

The BIFR had earlier reportedly observed that it would specifically examine whether Glol could be revived on a stand-alone basis. ICICI has been asked to formulate a rehabilitation scheme for Glol's revival, but not before the valuation of the assets of the company is done by a reputed firm of chartered accountants.

The sources say the valuation process has been concluded and certain "legal procedures" are holding back the proposed merger.

"While the operation and management of Glol and Sun Pharma are already integrated, the proposed merger will only unlock significant savings and improve efficiencies. It also puts at rest any doubt about Sun's intention to retain Glol within its fold," industry experts said.

Glol, with its entire net worth of Rs 17.86 crore eroded, registered accumulated losses of just over Rs 20 crore for the year ended March 31, 1999. However, indications are that the sick company has been making money for the last two consecutive quarters.