Auto component-maker Amtek Auto Ltd, backed by investors like Warburg Pincus and ChrysCapital, has redeemed its convertible bonds which were due for maturity this month, for Rs 662 crore ($145.97 million). The share price of Amtek Auto closed at Rs 169.7 on Thursday, which is approximately a third of the conversion price of the foreign currency convertible bonds (FCCBs) of Rs 458.64 each.
Amtek Auto said that with this payment, it has no outstanding amount of the $250 million raised through FCCBs issued in 2006.
Arvind Dham-led auto component group Amtek has been restructuring its public holdings. Last year, Amtek Auto announced plans to acquire 40 per cent stake, held by the promoters in Amtek India, for up to Rs 340 crore. After that, it made an open offer for Amtek India, along with its promoter group, and had increased its holding in the company to 61.64 per cent in the company.
While private equity major ChrysCapital holds 8 per cent stake in Amtek Auto through Warhol Ltd, Warburg Pincus holds another 5.58 per cent. Both these funds were also investors in Amtek India but had exited last year after booking losses.
For the quarter ended March 31, 2011, Amtek Auto reported 30 per cent increase in consolidated net profit – Rs 110 crore from Rs 85.23 crore a year ago. The firm’s total sales for the quarter also increased by more than 27 per cent –from Rs 920 crore to Rs 1,170 crore.