Opto Circuits' FPO price fixed at Rs 240-270

Mumbai, Mar 29 (UNI) Opto Circuits' price band for its follow-on public offer (FPO) has been fixed at between Rs 240 to Rs 270 and is scheduled to open for subscription on March 31 and close on April 6.

The FPO is for 40,00,000 equity shares of Rs. 10 each for cash at a premium, at a price to be determined through cent per cent book-building process.

Opto Circuits, which had declared a dividend of 35 per cent in FY 05 and 30 per cent in the four preceeding years, will use the proceeds of the FPO to upgrade its R&D facility and infrastructure, acquire additional plant and machinery and invest in its wholly-owned subsidiary MediAid Inc, and repay the short-term loan availed from the SBI to acquire EuroCor, a German company which it acquired early this year, a company release said.

The FPO will constitute 12.99 per cent of the fully diluted post-issue paid-up capital with the post-issue paid-up equity capital of the company at Rs 30.81-crore.

SBI Capital Markets Limited and Karvy Investor Services Ltd are the book-running lead managers to the FPO while Karvy Computershare Pvt Ltd is the registrar to the FPO.

Opto Circuits, a leading manufacturer of non-invasive healthcare equipments in India, has reserved 4,00,000 equity shares for its employees and those of its subsidiaries while another 4,00,000 shares are reserved for its existing retail shareholders.

Of the net issue of 32,00,000 shares on offer, 50 per cent (16,00,000) are being offered to QIBs on a proportionate basis, of which, five per cent will be allocated to mutual funds.

While the balance will be available for allocation to both QIBs and MFs, not less than 15 per cent (4,80,000) of the net issue will be available for allocation to non-institutional investors on a proportionate basis, while not less than 35 per cent (11,20,000) of the net issue will be available for allocation on a proportionate basis to retail investors, stated the release.

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