Global investment banker Goldman Sachs is likely to acquire 26 per cent stake in Indian medical equipment maker Opto Circuits (India) Ltd for around Rs 300 crore.
Bangalore-based Opto Circuits specialises in vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies.
“Goldman Sachs is likely to pick up 26 per cent stake in Opto Circuits, which will be through a combination of existing and fresh equity. Following that the investment banker will also appoint two members to the firm’s board,” a source told PTI.
When contacted, neither Goldman Sachs nor Opto Circuits offered any comments.
According to sources, the fresh infusion will be used to further expand the company’s medical device business.
“Goldman Sachs will pick up this stake at ₹50-52 per share, valuing Opto Circuits at about ₹1,300 crore,” the source said.
As per the BSE, Opto Circuits’ market capitalisation is around Rs 749 crore and its shares had closed at Rs 30.95 apiece on Friday, up 4.21 per cent from the previous close.
The company was on an acquisition spree in both domestic and overseas markets over the past 7-8 years.
The company bought the US-based Criticare Systems, Polco Labs, Unetixs Vascular and Cardiac Sciences Corp and also a German company EuroCOR. In India, it took over Kolkata-based NS Remedies.
Bullish on India’s healthcare sector, especially medical equipment firms, Goldman had invested Rs 110 crore by picking up 49 per cent stake in BPL’s Medical Technologies business in May last year.
The global financial power house has invested over $8 billion in the healthcare space spread across 30 countries
The sources also said Opto Circuits board will meet early next month for the third quarter results and also to clear the deal.
According to market research firm Equentis Capital, the healthcare sector in India is expected to grow to $158.2 billion by 2017 from $78.6 billion in 2012.