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Amtek Auto, 3 units agree to equity infusions by new investors

Press Trust of India  |  New Delhi 

Auto components maker today said a joint board meeting of Amtek Auto, Metalyst Forgings, ARGL and Castex Technologies has approved the proposal for infusion of fresh capital by new investors in each of the four group companies.

The plan also envisages a broader corporate restructuring involving the consolidation of the domestic business and the ongoing asset monetisation to support the proposed plan, it added.

"The Board of Ltd, Metalyst Forgings Ltd, ARGL Ltd and Castex Technologies Ltd discussed the proposed investment of equity by overseas investor(s) to take stake in each company and simultaneous proposed reduction and restructuring of the debt subject to the approval of lenders," said in a statement.

The investors will approach the lenders to implement the proposed comprehensive plan, it said.

"The plan will create an enterprise value (EV) reflecting the value of underlying assets, potential flows and a judicious capital structure for the benefit of all the stakeholders in the company," it added.

Amtek Auto stock closed 4.86 per cent up at Rs 42.05 on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 30 2016. 17:43 IST