Opto Circuits to raise $20mn

The Bangalore-based Opto Circuits (India) Ltd (OCI), a manufacturer of medical diagnostics and cardiac products, is looking to raise around $20 million from strategic investors in the US in the next few days.

The money will be used to fund the company's expansion in the US market.

Opto Circuits is planning to enter the US markets with its range of cardiac care products like coronary stents.

"To make a foray into the US market we need to have the approval of the US Food and Drug Administration for our cardiac stents. This requires huge amounts of money and the process takes a long time. So we are looking at raising additional funds from the strategic investors in the US, who understand our business and the product we are going to launch," a top company official said.

The company is also planning to issue warrants to its promoters to raise additional resources to fund its future plans. The company's board is meeting in Bangalore on May 24 to take a decision in this regard.

Opto Circuits has already made a preliminary study of the US market and lined up a slew of potential cardiologists and hospitals where its products is expected to be used.

The market for coronary stents in the US is estimated to be in the range of $4.5 billion and presently only two companies -- Boston and Johnson & Johnson -- are present in the US market.