The Times of India
Amtek Auto shares up 8.58% as company announces 25% dividend
Edited by : AL CIRCLE
2 min read
Delhi-head quartered auto components major Amtek Auto has announced a 25% dividend for its shareholders at the AGM held on Monday.
In a notification to the stock markets, Amtek Auto informed that the board declared "a dividend Rs 0.50 per equity share of face value Rs 2 each."
The AGM also saw the board extending "borrowing limit under Section 180 (1) (c) of the Companies Act 2013 to Rs 20,000 crore," said the market notification.
The component company's shares rallied on Monday, up 8.58% or Rs 12 to close at Rs 151.80.
Amtek's stock has seen some smart pickup ever since the company announced the completion of its takeover of 'substantial' stake in the Germany-based Kuepper Group a week ago.
The deal, first disclosed in December end, has generated interest because of the strong synergies that it offers Amtek. The acquisition has been through Amtek's 100% step down subsidiary Amtek Kuepper GmBH. The size of the deal is not yet known.
Amtek which already has substantial production footprint in Europe and a respectable list of top European clientele will be better able to not only service existing business but also expand its global presence thanks to the M&A, say analysts.
With production centres in Germany and Hungary, Kuepper has a strong presence in iron, aluminium casting and integrated machining parts with premium European car makers like BMW and Daimler as its clients. This is Amtek's second European deal in a year - last year it acquired stake in German group Neumayer Tekfor Group.
Amtek is one of the largest integrated component manufacturers in India and among the largest global forging and integrated machining companies. The group has operations across forging, iron and aluminium casting, machining and sub-assemblies. It has factories spread across India, the UK, Germany, Brazil, Italy, Mexico, Russia, Hungary and the US.
The Amtek Group comprises listed entities Amtek Auto, Amtek India, Ahmednagar Forgings, JMT Auto and other subsidiaries.
In a notification to the stock markets, Amtek Auto informed that the board declared "a dividend Rs 0.50 per equity share of face value Rs 2 each."
The AGM also saw the board extending "borrowing limit under Section 180 (1) (c) of the Companies Act 2013 to Rs 20,000 crore," said the market notification.
The component company's shares rallied on Monday, up 8.58% or Rs 12 to close at Rs 151.80.
Amtek's stock has seen some smart pickup ever since the company announced the completion of its takeover of 'substantial' stake in the Germany-based Kuepper Group a week ago.
The deal, first disclosed in December end, has generated interest because of the strong synergies that it offers Amtek. The acquisition has been through Amtek's 100% step down subsidiary Amtek Kuepper GmBH. The size of the deal is not yet known.
Amtek which already has substantial production footprint in Europe and a respectable list of top European clientele will be better able to not only service existing business but also expand its global presence thanks to the M&A, say analysts.
With production centres in Germany and Hungary, Kuepper has a strong presence in iron, aluminium casting and integrated machining parts with premium European car makers like BMW and Daimler as its clients. This is Amtek's second European deal in a year - last year it acquired stake in German group Neumayer Tekfor Group.
Amtek is one of the largest integrated component manufacturers in India and among the largest global forging and integrated machining companies. The group has operations across forging, iron and aluminium casting, machining and sub-assemblies. It has factories spread across India, the UK, Germany, Brazil, Italy, Mexico, Russia, Hungary and the US.
The Amtek Group comprises listed entities Amtek Auto, Amtek India, Ahmednagar Forgings, JMT Auto and other subsidiaries.
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