Commenting on the board decisions and working capital issues, Vinod Ramnani, Chairman and Managing Director, Opto Circuits, said, "We are presently working out the modalities for raising additional working capital for our operations in the US and Germany. We are in talks with institutions and banks for raising funds in Dollar or Euro denominations. We are confident of finalising a deal very soon." "The working capital situation would ease out very soon because we have to restructure it wherever the locations are," he added.
The promoters too, led by Ramnani, are also further investing in the company to tide over the problem. The board on Friday approved issuing share warrants to promoters on preferential basis. The company would issue 2 million share warrants at a price of Rs 145 per share. Ramnani will be the lone subscriber to the preferential issue and he would be required to deposit 25 per cent of the total issue of Rs 29 crore immediately.
Further, the company which was under intense stress after a credit rating agency stopped rating the company, on Friday inducted Krishna Sudheendra as Group Chief Financial Officer. Krishna comes
with a wealth of financial experience and he was the CFO at UST Global, a global IT services and solutions provider. Over nineyears with UST Global, he secured funding and investment to scale the company through an exciting growth phase. In addition to strengthening global operations, he implemented strong financial systems and controls to optimise performance and productivity.
In a move to beef up the board, Opto said it has proposed to appoint Bodapati Bhaskar, Senior Director, Finance and Support Services, Bangalore International Airport Ltd, to the Board of Opto Circuits. Earlier, Bhaskar held the position of CFO in Opto Circuits.
As part of the changes on the board, Opto also decided that Usha Ramnani, wife of Vinod Ramnani, will be stepping out of the board of Opto Circuits and will take over as Managing Director of Opto Cardiac Care Ltd, the largest subsidiary of the company, which accounts for 42 per cent of the total revenues of the group.
The company's stock closed at Rs 52.65 on Bombay Stock Exchange, about 5.83 per cent higher over the previous close. About 1.38 million shares changed hands in the day's trade.