Bangalore-based Opto Circuits specialises in vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies.
"Goldman Sachs is likely to pick 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.
Sources said the fresh infusion will be used to further expand the company's medical device business.
"Goldman Sachs will pick up this stake at Rs 50-52 per share, valuing Opto Circuits at about Rs 1,300 crore," said the source.
As per the BSE, Opto Circuits' market capitalisation is around Rs 749 crore and its shares on Friday closed at Rs 30.95 apiece, up 4.21 per cent from the previous close.
The company was on an acquisition spree in both domestic and overseas market over the past 7-8 years.
It bought 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 has 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 USD 8 billion in the healthcare space spread across 30 countries
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 USD 158.2 billion by 2017 from USD 78.6 billion in 2012.