The stock has been continuously under selling pressure for few months. It fell 71 percent year-to-date due to debt concerns after consistent acquisitions in the past.
Shares of Amtek Auto crashed 20 percent intraday on Tuesday as the company defaulted a Rs 800 crore bond payment due on Sunday. The auto parts maker, which was to redeem the five-year bonds, did not make the payments.
The stock has been continuously under selling pressure for few months. It fell 71 percent year-to-date due to debt concerns after consistent acquisitions in the past. The fall in stock price was also after it reported loss (of Rs 157 crore) for the first time ever in Q1FY16 and removal from F&O segment by National Stock Exchange.
However, there were spurts of buying seen in early September on hopes of the company selling non-core assets to reduce its debt.
Amtek Auto is the flagship company of Amtek Group which has revenue of over USD 3.5 billion. It has manufacturing facilities across India, UK, Germany, Brazil, Italy, Mexico, Hungary and US.
At 14:28 hrs Amtek Auto was quoting at Rs 46.05, down Rs 5.85, or 11.27 percent on the BSE.The Great Diwali Discount!
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