Amtek Auto surges over 14% on plans to venture into railways, oil & gas

NEW DELHI: The shares of Amtek Auto surged over 14 per cent in trade after the company announced that it plans to diversify into new areas such as aerospace, railways and oil and gas.

"These are some new sectors identified by us for future growth," Amtek Auto senior managing director John Flintham told ET. The group will however continue to maintain its main focus on the automotive industry, but is looking at synergies with other areas to harness growth potential.

"With the successful acquisition of Jamshedpur-based (component maker) JMT Auto, we have managed to more than double our customer base in the oil and gas sector that has given us the confidence to explore this industry as future growth area," Flintham said.

Kohlberg Kravis Roberts (KKR) has recently agreed to offer a credit of 235 million (about Rs 1,800 crore) to the group's Singapore subsidy Amtek Global Technologies to retire part of the group's debt and fund expansion.

At 10:36 a.m., the stock was trading at Rs 226.85, up 14.02 per cent or Rs 27.85 on the BSE. It hit a intraday high of Rs 231.25 and a low of Rs 200.5.