Opto Circuits to raise up to Rs 1,500 cr

The company's board approved a fund raising plan that includes an overseas issue of GDR or ADR

Medical devices manufacturer Opto Circuits (India), under intense pressure due to working capital shortage and high debt levels in the recent past, on Tuesday decided to raise fresh funds of up to Rs 1,500 crore ($250 million).

The company intends to do this by issuing securities including Global Depository Receipts (GDRs) or American Depository Receipts (ADRs) convertible into equity shares or any other instruments representing convertible securities.

The company’s board of directors, which met here, approved the proposal. It also decided to increase the authorised share capital of the company to Rs 700 crore from the present Rs 300 crore.

Currently, the company’s net debt stands in the range of Rs 1,400 crore.

In a filing to the BSE, the company said the decision to raise fresh funds was subject to shareholders approval and other regulatory approvals.

The company plans to raise funds through convertible securities such as convertible debentures, bonds or warrants, convertible into equity shares, in one or more tranches, in Indian or foreign market(s) as applicable.

The company's shares declined 4.52 per cent to Rs 31.65 a share on the BSE at the close of trading on Tuesday.

For the third quarter ended December 2013, Opto Circuits reported a consolidated net loss of Rs 6.79 crore due to lower operational income and higher interest cost. Its consolidated net sales for the quarter decreased by 42.8 per cent at Rs 354 crore, against Rs 619 crore in the corresponding quarter of the previous financial year.

The company specialises in vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies.