Based on the reports of Ernst & Young and S Wiswanath, two independent firms, the boards have approved a swap ratio of 12 shares of TTK Pharma for 50 equity shares of TTK Biomed.

TTK Biomed closed at Rs 7.50 on the BSE on Wednesday. Its 52-week high was Rs 10 while the low was Rs 3. TTK Pharma was quoted at Rs 39 with the high and low at Rs 50 and Rs 21 respectively. The scrip has shot up from Rs 32 levels last week.

The name of TTK Pharma Ltd will be changed to TTK Healthcare Ltd to reflect the fortified core business of the company. With the merger of TTK Biomed with TTK Pharma, the 43 per cent stake of TTK Biomed in TTK Maersk--a joint venture company of the TTK group--would become a part of TTK Pharma.

Subject to approval of shareholders and sanction of the respective High Courts, the merger will take effect from July 1, 1999. With this,the manufacturing and marketing of these companies will be brought under one roof.