Amtek Auto to raise fresh funds

Arvind Dham-led automotive component supplier Amtek Auto Ltd, which counts ChrysCapital as a shareholder, has decided to raise money by way of issuing shares through a qualified institutional placement or other instruments, according to a stock market disclosure. 

The PE-backed company obtained its board approval last week to raise fund via issuing shares to qualified institutional investors or international offerings or other securities convertible into equity shares and/or such other equity-linked instruments, it said in its regulatory filing.

It did not say how much money it plans to raise.

Founded in 1985, Gurgaon-based Amtek Auto manufactures automotive components and assemblies, iron, gravity and aluminium castings, forgings, complex machining, ring gears and flywheel assembly. It also owns over 70 per cent in another public listed auto component firm Amtek India.

Early this year Amtek India acquired Germany's Kuepper Group of companies for an undisclosed amount. The acquisition brought under its fold iron, aluminium casting and integrated machining with five manufacturing facilities across Germany and Hungary.

This was the third acquisition for Amtek as a group within a year. Last year Amtek Auto acquired business interests of Germany’s Neumayer Tekfor Group for an undisclosed amount. The acquired business has annual revenues of around €500 million ($650 million or Rs 3,500 crore).

Back home, it also acquired a majority stake in another public listed auto component maker JMT Auto.

Currently, Amtek Group, along with its subsidiaries, operates around 60 facilities in India, the UK, Germany, Brazil, Italy, Mexico, Russia and the US.

(Edited by Joby Puthuparampil Johnson)

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