Mumbai, Nov 3: Shares of Amtek Auto Ltd today zoomed over 14 per cent after the troubled auto component maker appointed Morgan Stanley as advisor to assist in its debt reduction plan. The stock surged 14.34 per cent to settle at Rs 44.25 on BSE. During the day, it advanced 17.31 per cent to Rs 45.40. At NSE, shares of the company rose sharply 14.21 per cent to end at Rs 44.20.(Read: KKR partners Chernin Group to launch Emerald Media in Asia)
On the volume front, 59.81 lakh shares of the company changed hands at BSE and over 2 crore shares were traded at NSE during the day. “Shares of Amtek Auto continued to draw investor attention and were seen in limelight after investors sensed progress on debt reduction plan of the company. The company recently appointed Morgan Stanley as an advisor to assist the troubled auto parts maker in reducing its debt,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio.
In a regulatory filing yesterday, the firm said it was considering various options, including a minority stake sale of up to 25-40 per cent in its overseas business. Amtek Auto also said that it has “received a large number of enquiries for the outright purchase of a couple of the company’s overseas businesses which include for instance Tekfor group.”
In September, the company had stated that it was considering non-core business, minority stake in overseas firm and some industrial real estate assets within the business to overcome financial crisis. A month before, it had said there is “temporary cash flow mismatch” and to mitigate the situation, promoters have already infused Rs 75 crore and if required in future will also infuse more funds. 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.