Amtek Auto shares jumped as much as 12 per cent in the morning trade on Tuesday after the company informed BSE that it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan.(Photo: Reuters)
Amtek Auto shares jumped as much as 12 per cent in the morning trade on Tuesday after the company informed BSE that it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan.
At 10.09 am, the share price of Amtek Auto was up 11.89 per cent at Rs 43.30. The scrip opened at Rs 40.65 and had touched a high and low of Rs 43.35 and Rs 40, respectively, in trade so far. Sensex was up 0.45 per cent at 26,679.
In a regulatory filing, the firm said it was considering various options, including a minority stake sale of up to 25-40 per cent in its overseas business. 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 this 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. There are several options and it is a matter of right value-opportunity that will determine the eventual decision,” the company said in a filing.
The Amtek group is understood to owe over Rs 26,000 crore to 32 banks, including State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank, Bank of Maharashtra and UCO Bank.
In the past one year, the share price of Amtek Auto nosedived 77.27 per cent to Rs 38.70 on November 2, 2015. The share price of the copmany was at Rs 170.25 on November 3 last year. Sensex declind 4.67 per cent during the same period.
For the quarter ended September 30, 2015, the company reported net loss of Rs 157.60 crore, down 283.09 per cent, against net profit Rs 86.08 crore in the corresponding quarter a year ago.
Amtek Auto is engaged in the manufacture of components such as connecting rod assemblies, flywheel ring gears and assembly, steering knuckles, suspension and steering srms, CV joints, crankshaft assemblies and torque links. They are backed by in-house design and development facilities engaged in developing new product and processes.The company also has production facilities located strategically across North America, Europe & Asia. Their product portfolio consists of an extensive range of components for Cars,Tractors, LCV, HCV and Stationary engines.
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