Medical equipment manufacturer Opto Circuits (India) Ltd had bought N. S. Remedies Ltd for $1.5 million, the company unveiled on Monday. The acquisition was accomplished in an all-cash deal.

Vinod Ramnani, Chairman and Managing Director of Opto Circuits said in a statement that with the acquisition, Opto would not only expand its manufacturing, but it would also help the company to significantly reduce its manufacturing cost for bare metal stents, allowing the company to remain less dependent on outside agencies.

As said by some sources in the company, the acquisition would save nearly 23 to 25 per cent of the amount that the company is paying currently on outsourced manufacturing. Based in Kolkata the N. S. Remedies Ltd. possesses advanced production and research and development facility for stent manufacturing.

"The company has capabilities to produce stainless steel and cobalt chromium stents," Opto said in its official statement.

Backed by the acquisition information, shares of Opto Circuits rallied past Rs. 220 per share, but bowing to selling pressure the company's stocks ended the day at Rs. 218.20 per share, up by 0.62 per cent as compared to its previous close.