Amtek Auto, one of the largest integrated component manufacturers in India witnessed a sharp rise in share price after the company announced that it is in plans to reduce debt through stake sale in its overseas business.

The company said, 'The various options to reduce debt include a minority stake-sale of upto 25-40% in our overseas business.'

Amtek also said, 'During the process the company have received a large number of enquires for the outright purchase of a couple of the company's overseas businesses which include for instance Tekfor group.'

'The interest for stake purchase has come from trade players and financial players around the globe. These businesses are located in a much coveted market attracting premium valuations in the global markets,' it added.

The company has appointed Morgan Stanley as advisors to assist in the group's debt reduction plan.

Shares of Amtek Auto are trading at Rs 43.70, up Rs 5, or 12.92% at the Bombay Stock Exchange (BSE) on Tuesday at 11:21 a.m.