Date:01/04/2005 URL: http://www.thehindubusinessline.com/2005/04/01/stories/2005040101950200.htm

Back Opto Circuits to buy US co through GDR proceeds

Our Bureau

Bangalore , March 31

OPTO Circuits (India) Ltd, a health monitoring products company, has decided to raise $20 million by issuing GDR, with a green shoe option to raise an additional $5 million. The money would be used for acquiring a US-based company manufacturing diagnostics products.

The decision, which was taken at the company's board meeting held here on Thursday, would be presented to its shareholders at an EGM to be held on May 5.

The Chairman and Managing Director, Mr Vinod Ramnani, told Business Line that pricing and other details about GDR issue would be decided later. Apart from expansion of its business, the proceeds of GDR would be utilised for setting up a world-class R&D facility in Bangalore.

Mr Ramnani said currently talks were on with two US companies with whom Opto Circuits was negotiating the price and added that a final outcome was expected in a month or before the GDR issue, likely to be floated by May.

While declining to give details of the negotiations, Mr Ramnani said the company proposes to move manufacturing from the US after the deal.