Amtek Auto shares were locked at 5 upper circuit at Rs 31.15 amid high volumes on Monday after subsidiary signed agreement to sell UK plants to Liberty Group.
There were pending buy orders of 63,872 shares, with no sellers available on the BSE, at 11:01 hours IST.
"Amtek Global Technologies Pte. Ltd., subsidiary of Amtek Auto Limited, has entered into an arrangement to sell its UK based subsidiaries' plants to Liberty Group," the company said in its filing on July 21.
Amtek Auto is one of 12 accounts identified by RBI under Insolvency & Bankruptcy Code.
The company 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.
Meanwhile, the auto ancillary company's loss widened sharply to Rs 889.6 crore in the quarter ended June 2017, from Rs 319.7 crore in year-ago quarter, hit by lower revenue and exceptional inventory loss.
Exceptional items primarily included loss arising from corrective action taken for inventory.
"The company during the quarter completed a detailed technical, commercial and market evaluation of all its inventories owing to decline in effective operations due to working capital stress. Based on such assessments, the management took corrective action such as sale of aged and non-usable inventory, determine alternate usage of certain inventories, and has accordingly recorded any loss arising therefrom in the quarter," Amtek Auto explained.
Revenue during the quarter fell to Rs 446.8 crore from Rs 576.5 crore in same quarter last fiscal.
Posted by Sunil Shankar Matkar
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