Opto spurts on buyout buzz

DALAL STREET SPIKES

Opto Circuits went up 4.08 per cent to Rs 227.15 from the previous day's price of Rs 218.25. The scrip was triggered by media reports about the prospect of the company buying two US firms for an estimated cost of about $25 million.

The two companies are based in Boston and southern California, one listed on Nasdaq and the other being held privately. The Bangalore based manufacturer of non-invasive healthcare equipment, is poised for a 40-50 per cent growth in the current financial year.

The company officials had clarified that once the US firms were acquired, the company will shift its manufacturing activity to India, to lower the costs.