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Amtek Auto up 5% as Bharat Forge, Sona Koyo & overseas PE firms eye stake in company

The company's debt as of March 2016 stood at more than Rs 14,000 crore.

June 29, 2017 / 01:49 PM IST
 
 
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Amtek Auto shares were locked at 5 percent upper circuit at Rs 30.90 on Thursday after a media report indicated that domestic auto ancillary companies and foreign PE firms are in race to acquire some stake in the businesses run by Amtek Group.

Other group companies - Metalyst Forgings was also locked at 5 percent upper circuit and Castex Technologies rallied 14.6 percent intraday.

"Domestic strategic buyers, including Bharat Forge and Sona Koyo Systems, are competing with bulge-bracket private equity funds such as Blackstone Group, KKR and DA Capital to acquire all or part of Amtek Group’s businesses," The Economic Times said quoting multiple sources with knowledge of the matter.

Lenders to the debt-laden group are looking to auction the units off to get their money back, the report added.

Promoters' shareholding, which was at 52.4 percent (as of March 2017), could be reduced significantly post this stake sales.

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Amtek Auto, which posted loss of Rs 1,133 crore on revenue of Rs 6,911 crore in FY17, is one of 12 accounts recently identified by the Reserve Bank of India under the Insolvency and Bankruptcy Code, 2016.

The company's debt as of March 2016 stood at more than Rs 14,000 crore.
first published: Jun 29, 2017 01:49 pm

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