Merck Ltd, a wholly-owned subsidiary of Merck KGaA of Germany, has decided to buy-back around 35 per cent of the total paid-up equity share capital of the company from open market, after the necessary approvals from share holders and statutory authorities in two parts. It is planning to purchase 10 per cent equity shares at a price of Rs 435 each involving an amount of Rs 45.11 crore and around 25 per cent equity shares at a same price at a total consideration of Rs 112.78 crore.

Currently, Merck scrip is moving around Rs 390 on Bombay Stock Exchange with 52-weeks peak level of Rs 409.

The company board has approved a buy-back of its outstanding equity shares in accordance with the provisions of Sections 77A, 77AA, 77B and other applicable provisions, of the Companies Act, 1956.

The company's equity capital stood at Rs 16.86 crore as at the end of March 2009 and its reserves and surplus touched to Rs 434.53 crore as at the end of December 2008. As at the end of March 2009 the equity holding of its foreign parent company was 51 per cent and after the proposed buy-back scheme holding will go up to 86 per cent. The public shareholding worked out 29.48 per cent and that of public financial institutions, mutual funds & banks and insurance companies was 13.45 per cent.

The company declared equity dividend of 175 per cent for the year ended December 2008 as against 200 per cent in the previous year. Though its net sales for the first quarter ended March 2009 increased to Rs 98.85 crore from Rs 83.36 crore, its net profit declined to Rs 8.61 crore from Rs 16.19 crore. For the full year ended December 2008, its net sales amounted to Rs 390 crore and it earned a net profit of Rs 63 crore.