Board of Directors - Opto Circuits

30
WEALTH CREATION
Total shareholder return is a measure of the gain delivered to the shareholders of
the company. Returns are calculated not only in terms of the dividend per share,
but also in terms of capital appreciation in the underlying investment.
The management of Opto Circuits believes in rewarding shareholders
handsomely, and this is reflected in the undermentioned list of
dividend and bonus shares announced by the company over the years:
FY Dividend Bonus Share
FY 2000-01 30% -
FY 2001-02 30% 1:10
FY 2002-03 30% 2:10
FY 2003-04 30% 3:10
FY 2004-05 30% 4:10
FY 2005-06 35% 5:10
FY2006-07 40% 1:1
Years Bonus Bonus Cumilative Dividend Dividend Cumilative
Shares Shares Investment % Amount Dividend
Ratio alloted in Shares
2000-01 - - 1000 30% 3000
2001-02 1:10 100 1000 30% 3000 6000
2002-03 2:10 220 1100 30% 3300 9300
2003-04 3:10 396 1320 30% 3960 13260
2004-05 5:10 858 1716 35% 6006 19266
2005-06 1:1 2574 2574 40% 9009 28275
2006-07 - - 5148 - - -
Returns
Initial investment 1000 at 50 50000
Add bonus shares 1574
Total shares as on date 2574 400 1029600
Add dividends 19266
Total returns 1048866
Asa%ofinvestment 2098%
Opto Circuits made a follow on public offer (FPO) of 4mn shares at a
price of Rs270 per share. The follow on issue was for an aggregate
sum of Rs.108 crore. The issue elicited a tremendous response and
was oversubscribed 4.89 times. The HNI portion was over subscribed
3.5 times, QIB portion 9.88 times and retail portion 1.54 times.
Opto's shares have generated a return of 48% over a short span of four
and a half months from the FPO issue closing date as compared to a
negative return of 12.2% by the BSE HealthCare Index. Opto has
been a significant out-performer as compared to every index in
a highly volatile market.
Table: Major index returns over April - August 2006
Index April 1 2006 16-Aug-06 Returns
BSE HC 3944 3463 (12.2)
BSE 200 1446 1373 (5.0)
BSE 500 4626 4354 (5.9)
SENSEX 11564 11448 (1.0)
NSE Nifty 3473 3356 (3.4)
CNX Midcap 4897 4265 (12.9)
This overwhelming response to the FPO highlights the faith
and trust that the public has in the company.
Table: Objects of FPO
Major Activity Cost (Rs mn)
To set up R&D center 194
Cost of upgrading infrastructure and for
modernizing and acquisition of additional
plant and machinery 164
Establishing marketing offices by wholly
owned subsidiary Mediaid, Inc. USA. 75
Additional Working Capital Margin 225
To meet part of the cost of acquisition of
EuroCOR, GmBH, Germany 272