Auto accessory maker Amtek Auto Ltd plans to acquire Frankfurt-based KSM Castings for about 250 million euros (around Rs 1700 crore).

If the proposed deal accomplishes, it will not only strengthen Amtek's business footprints in lucrative markets of Europe, but it will also be one of the largest acquisitions by an Indian company in the automotive forging space.

But it will take some more time for the deal to be accomplished.

Apart from Amtek, two other global private equity players are also in the race.

KSM Castings is a leading manufacturer of security and complex, light metal castings for the global automotive industry. Recently, Amtek bought another UK-based gear company called Triplex Ketlon.

In order to diversify its business activities, Amtek Auto is setting up around 10 greenfield facilities in India, which entails capital expenditure of around Rs 300 crore.

Stock of Amtek Auto closed at Rs234, up Rs 2.15 on National Stock Exchange.