Volume Shocker: Opto Circuits

Opto Circuits (India) has tanked 14% to Rs 119, its three-year low, on back of over four-fold jump in trading volumes.

A combined 12.56 million shares representing 5% of total equity of the company have changed hands on the counter till noon deals, against an average around three million shares that were traded daily in past two weeks on the NSE and BSE.

The stock of medical equipment maker is continuously under pressure falling 23% in past seven trading sessions on the BSE, after ratings agency ICRA earlier this month suspended the rating assigned to the Rs 538 crore fund based facilities of Opto Circuits.

 

According to media reports “ICRA had cited concerns about Opto’s “stretched liquidity position”, saying factors such as high capital spending were resulting in “negative” free cash flows. The rating agency also said Opto had not provided information it had requested”.