NEW DELHI: Delhi-based automotive component maker, Amtek Auto has sought a three-fold increase in its borrowing limit to Rs 3,000 crore.
The company�s board has approved a resolution to generate a corpus of Rs 3,000 crore in the near future by pledging its entire asset base to banks, financial institutions and other corporate bodies.
The move however, is subject to approval by members of the company, which would be taken by way of a postal ballot.
Amtek�s chairman Arvind Dham said, �We have moved an enabling resolution, allowing the company to raise its burrowing limit from the current Rs 1,000 crore to improve liquidity position. The fund that would be generated would be used as and when required by the company, allowing both organic and inorganic growth. We are on sound financial footing and Amtek�s debt-equity ratio stands at 0.75:1 as of now and we are a very leveraged company. The move will allow us to raise money faster in case of future transactions.�
Source : Economic Times (2/1/2009)
No comments:
Post a Comment