Moneycontrol Bureau
Investors continued to buy shares of Amtek Auto on Monday. The stock gained 24 percent intraday as the company may sell non-core assets to reduce its debt.
On Friday after market hours, the auto component manufacture said it is considering various means to de-leverage the balance sheet including selling of non-core business, minority stake in overseas companies and some industrial real estate assets within the business.
However, as on date, no negotiations are carried on, it added.
Amtek further said in the past, the promoter has pumped in money in the company and if required, in future, may infuse more money in the Company.
According to a media report, Amtek Group is going to cut debt by almost Rs 7,000 crore from the current level of Rs 17,500 crore in next 12 to 15 months.
The stock rallied for the second consecutive session today after it had been facing selling pressure. On Friday, the stock shot up nearly 54 percent after capital infusion of 75 crore by promoters through preferential allotment.
It fell 69 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.
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 11:08 hours IST, the scrip of Amtek Auto was quoting at Rs 55.50, up Rs 8.80, or 18.84 percent on the BSE.Posted by Sunil Shankar Matkar
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