Opto Circuit (India) Ltd (OCI), the Bangalore-based leading manufacturer of healthcare equipments, is coming out with Follow-on Public offer (FPO) of 40 lakh equity shares of Rs 10 each with a price band between Rs 240 to Rs 270 through the 100 per cent book building process. The FPO is scheduled to open for subscription from March 31 and close on April 6 2006. SBI Capital Markets and Karvy Investor Services are the book running lead managers.

The proceeding of the propose issue will be mainly use for upgradation of R&D facility as well as infrastructure, investment in Mediaid Inc, a wholly owned subsidiary, for setting up marketing offices and repayment of loans availed from SBI for the acquisition of EuroCor GmbH. The total funds for these plans are estimated at Rs 92.94 crore. Out of the total investment, OCI has already invested Rs 24.43 crore so far.

The company is planning to invest Rs 19.38 crore to upgrade its R&D facility and set up a new highly specialized manufacturing facility under the R&D facility at Bangalore. The company is setting up PCB assembly facility with sophisticated equipments such as SMT machines, screen printers, reflowovens, etc. OCI is investing Rs 16.35 crore for upgrading infrastructure and acquisition of additional plant & machinery. The company is making investment to the tune of Rs 7.50 crore in its subsidiary company to established marketing offices in various parts.

OCI acquired EuroCor, GmbH, Germany for a total consideration of Rs 27.21 crore during December 2005. The German company is specializing in the research, development and manufacture of interventional cardiology products like coronary stent technologies and special cardiovascular devices.

Vinod Ramnani, chairman and managing director, said, "OCI has been in the business of healthcare equipments for over ten years and now planning to expand its activities. We established ourselves as a supplier of non-invasive OEM Optical sensors in the field of patient monitoring systems. Majority of our product is currently exported through our business associates and through direct sales. We will continue to grow our supplies to OEMs worldwide. OCI is planning to expand its product range and increase product reach by setting up branches in Germany, France, Dubai Singapore, Brazil and Chile."

OCI, an ISO 9001 company, is already listed with US FDA and managing its business in several markets like US, Latin America and Europe through its wholly owned subsidiary in US. OCI is growing fast and its total income moved up to Rs 78.38 crore during the year ended March 2005 from Rs 58.89 crore and earned a net profit of Rs 19.20 crore as against Rs 12.93 crore. The company stepped up equity dividend to 35 per cent from 30 per cent in the previous year, added Ramnani.