Pune-based forging company Bharat Forge, part of the $2.5-billion Kalyani Group, has expressed interest in acquiring loss-making auto components manufacturer Amtek Auto, bankers with direct knowledge of the development said. Amtek Auto, which has an outstanding debt of Rs 14,074.46 crore as of March 2016 as per Capitaline data, was admitted by the Chandigarh bench of the National Company Law Tribunal for insolvency proceedings on July 24. On August 30, the interim resolution professional in charge of Amtek Auto had called for expressions of interest from potential investors for investment opportunities in the company.
“We are definitely looking at the company. However, we have not yet submitted any bid,” Amit B Kalyani, executive director, Bharat Forge, told FE. Bankers said potential investors are likely to submit their bids only in the second half of December as the due diligence process is still on. Global investment firm KKR has also expressed interest in investing in the company, bankers said. According to a list published on August 17, the total claims filed by financial creditors stood at Rs 12, 722.76 crore. The amount admitted by the NCLT was Rs 12, 321.95 crore. The top three claims filed were by IDBI Bank, State Bank of India and Life Insurance Corporation of India at Rs 1,701.89 crore, Rs 1,107.53 crore and Rs 1,036.37 crore, respectively.
New Delhi-headquartered Amtek Auto counts two-wheelers companies and auto-makers such as Hero MotoCorp, Honda Motorcycle and Scooter India, Hyundai Motor, Tata Motors, Mahindra & Mahindra, Ashok Leyland and others as its customers. Its product portfolio include ring gears, machining components, forging components, aluminium high pressure die casting, gravity die casting and casting iron. It has facilities in India, Europe and North America. The company reported a net loss of Rs 862.43 crore for the June quarter on total revenue of Rs 446.84 crore. In the previous financial year, the net loss stood at Rs 1,494.22 crore, while the total revenue was Rs 1,982.46 crore. The company has asked for an extension till January 30, 2018 to file its results for the September quarter. Bharat Forge is a leading manufacturer and exporter of automotive components including powertrain and chassis components. It counts global carmakers such as Audi, BMW, Ford, Mahindra & Mahindra, Maruti Suzuki and others as its clients. It reported a net profit of Rs 175.08 crore on revenue of Rs 1200.79 crore for the June quarter.