ValuePickr Forum

Amtek Auto +(JMT AUTO)- nclt case Ready to be resolved

Positive points
1- Largest auto ancillary company in India and among the top 10 in the world as regards capacity.
2- Book Value is 5 times present share price.
3- Has a debt of only 12k crores and against the same has nearly 80+ manufacturing facilities in India and abroad.
4- Main supplier of auto components to Maruti & Tata.
5- Also supplies to top auto companies of the world like Mercedes Benz and BMW
6- Equity value of overseas investments more than 13000 crores.
7- 85% of sales are From overseas units
8- Total annual sales in 2015 - 15000 crores with EPS of RS 40 per share
9- About to be resolved in nclt in a couple of weeks
10- Most likely buyer - Liberty House or Deccan value investors

1 Like

How do you confirm the point 9

The two bidders have given quotes of around 3900 crores which is just 8 % less than the 4200 crores asked as minimum bid. Negotiations are going on and I suppose a 4200 crore deal is not going to be cancelled for just 300 crores. Worst come worst if it does not happen there’s going to be a second round of bidding. Banks can’t expect to recover more than 10 % of the loan amount of 12000 crores if there is liquidation so they won’t mind settling for a little less than 4000 crores.

Hi @Acepace,
These both are separately listed Cos. @544 Cr and @244 Cr market cap. How both these Cos. are linked together?

Amtek Auto owns 72% in JMT AUTO

Therefore the one who has majority stake in Amtek auto will become a owner of JMT AUTO. Likely to be known in next two weeks. Liberty House of UK is the front runner

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Last Modified: Mon, Feb 05 2018. 12 36 AM IST
Liberty House in talks with banks over revised Amtek Auto bid
Liberty House are negotiating with the lenders of Amtek Auto and are also willing to restructure the deal to find a middle path. The valuation is also being reconsidered

Amtek Auto is currently undergoing resolution under the insolvency and bankruptcy code (IBC).
Amtek Auto is currently undergoing resolution under the insolvency and bankruptcy code (IBC).
Malvika JoshiAlekh Archana
Mumbai: UK-based Liberty House Group is in talks with the lenders of Amtek Auto Ltd to submit a revised bid for the troubled auto component maker after its previous bid was rejected by a panel of lenders supervising Amtek’s bankruptcy proceedings, two people close to the development said.

Lenders rejected the only two bids received from Liberty House and Deccan Value Investors, on the grounds that they quoted less than Amtek’s liquidation value, according to the people mentioned above, who spoke on condition of anonymity. Amtek Auto is currently undergoing resolution under the insolvency and bankruptcy code (IBC).

“They (Liberty House) are negotiating with the lenders and are also willing to restructure the deal to find a middle path. The valuation is also being reconsidered,” the first of the two people cited above said.

A Liberty House spokesperson said the firm is “engaged in the process and working towards an amicable solution.”

Banks are willing to accept fresh bids from Liberty House, Deccan Value and other eligible applicants, though they do not want to start the whole bidding process due to time constraints, the second person cited earlier said. A decision is likely in the next two weeks, he said. A spokesperson for Corporation Bank, which leads the committee of creditors, did not respond to calls and messages.

State Bank of India (SBI) had initiated insolvency proceedings against Amtek Auto in the Chandigarh high court in July 2017. Under IBC, a distressed account needs to be resolved within a timeline not exceeding 270 days. Amtek’s lenders have already sought a 90-day extension as the 180-day deadline lapsed on 20 January.

Amtek has a total of Rs12,586 crore claims admitted against it according to the data given by the Insolvency and Bankruptcy Board of India. Separately, SBI initiated insolvency proceedings against Amtek Auto’s subsidiary Castex Technologies Ltd in October 2017. Castex features in the second list of 28 stressed accounts issued by the RBI to the banks for resolution. At the end of March 2017, Castex had a total debt of Rs6,285 crore whereas the two other units of Amtek—Metalyst Forgings Ltd and Amtek Ring Gears Ltd had debts of Rs3,473 crore and Rs2,000 crore respectively.

With consolidated assets worth Rs26,080 crore, the Amtek Group has operations across forging, iron and aluminium casting, machining and sub-assemblies.

TOPICS: LIBERTY HOUSEAMTEK AUTOBANKRUPTCY PROCEEDINGSIBCINSOLVENCY AND BANKRUPTCY CODE

First Published: Sun, Feb 04 2018. 11 46 PM IST

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