Amtek Auto seeks nod of shareholders to rejig Rs 95 crore debt
The auto component firm will allot 2,68,33,876 shares to Assets Care and Reconstruction Enterprise - an unsecured lender of the company.
Debt-ridden auto component firm Amtek Auto plans to issue more than 2.6 crore shares to a lender as part of restructuring debt worth Rs 95.26 crore.
The company plans to seek shareholders' nod for the proposal during the upcoming annual general meeting (AGM) on July 7, Amtek Auto said in a regulatory filing.
As part of the exercise, a loan amount of Rs 95.26 crore would be "adjusted against issue of equity shares".
The auto component firm will allot 2,68,33,876 shares to Assets Care and Reconstruction Enterprise -- an unsecured lender of the company.
"The proposed allotment of shares is part of the restructuring of loan of the proposed allottee, which would result in substantial reduction of loan of the proposed allottee, strengthening of the financial position and increase in net worth of the company," Amtek Auto said.
Amtek's total amount of interest due till July 15 would be little over Rs 297.69 crore, as per the filing.
After the share allotment is through, Assets Care and Reconstruction Enterprise would have a stake of 9.75 per cent in the auto component firm.
On the other hand, promoter group stake would come down to 47.29 per cent from the current 52.39 per cent.
The auto component maker has been struggling to make a turnaround ever since it reported "temporary cash flow mismatch" in 2015 and defaulted on payment of an estimated Rs 800-crore bond.Amtek Auto shares today ended 1.04 per cent down at Rs 33.40 on the Bombay Stock Exchange (BSE).