Auto-parts maker Amtek Auto Ltd has been reported to be in talks to buy Raghu Hari Dalmia-controlled OCL Iron and Steel Ltd (OISL).

The acquisition deal is estimated to be valued at around 3.5 billion rupees.

Market experts believe that the latest move by the company for acquisition of steel company with captive iron ore and coal mines is a part of its strategy for backward integration.

According to reports, it has been revealed that the company has begun the due diligence process and is likely to close the deal early next month.
Amtek Auto Limited engages in the manufacture and sale of auto components in India and internationally. Its products primarily include connecting rods assemblies, piston assemblies, case component assemblies, and forgings.

The scrip of Amtek Auto touched an intraday high of Rs 118 and an intraday low of Rs 102. At 11:35 am, the share was quoting at Rs 112, up Rs 12.70, or 13%.

Yesterday the share closed down 1.19% or Rs 1.20 at Rs 99.30.