Amtek Auto gains after signing contract to acquire German firm

Amtek Auto advanced 1.31% to Rs 161.85 at 14:49 IST on BSE after the company signed a contract to acquire German based REGE Holding GmbH through its 100% Singapore based subsidiary Amtek Engineering Solutions Pte.

The announcement was made after market hours on Friday, 22 May 2015.

Meanwhile, the BSE Sensex was down 308.49 points, or 1.1%, to 27,649.01

On BSE, so far 5.65 lakh shares were traded in the counter, compared with an average volume of 2.92 lakh shares in the past one quarter.

The stock hit a high of Rs 164 and a low of Rs 159.90 so far during the day. The stock hit a 52-week high of Rs 272.40 on 9 June 2014. The stock hit a 52-week low of Rs 129.20 on 24 March 2015.

The mid-cap company has an equity capital of Rs 44.06 crore. Face value per share is Rs 2.

The transaction will provide an enhanced machining platform to integrate with the Amtek group's global forgings and castings business, Amtek Auto said. The acquisition is expected to close by August 2015, it added. REGE Holding GmbH through its subsidiaries, will provide machining and assembly of components for both auto and non-auto segments. Its operations are conducted from three state-of-the-art plants, two in Germany and one in Romania. The key products include manufacturing of connecting rods, crankcases, cylinder heads, gear housings and valve body components. The company generates majority of its revenue acting as a tier - 1 and single source supplier to leading automotive companies globally.

Amtek Auto reported 52.9% rise in net profit to Rs 129.82 crore on 14.1% rise in total income to Rs 1134.93 crore in Q2 March 2015 over Q2 March 2014.

Amtek Auto is one of the largest integrated component manufacturers.

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