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Amtek Auto soars on heavy volumes

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Capital Market
Last Updated : Sep 12 2015 | 12:01 AM IST

Amtek Auto surged 49.01% to Rs 45.30 at 15:27 IST on BSE after managing director John Flintham reportedly said in interview to news channel that the company may look to sell significant minority stake in overseas businesses to pare debt.

Meanwhile, the BSE Sensex was down 32.35 points, or 0.13%, to 25,589.82.

The stock surged a staggering 74.84% at the day's high of Rs 53.15 in intraday trade so far. The stock rose 5.92% at the day's low of Rs 32.20 in intraday trade so far. The stock had hit a 52-week high of Rs 266 on 12 September 2014. The stock hit a 52-week low of Rs 25.60 on 4 September 2015.

The rally in the stock was accompanied by huge volumes. On BSE, so far 1.89 crore shares were traded in the counter, compared with an average volume of 15.81 lakh shares in the past one quarter.

The stock had underperformed the market over the past one month till 10 September 2015, falling 81.52% compared with 8.82% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 78.64% as against Sensex's 4.54% decline.

The small-cap company has an equity capital of Rs 44.06 crore. Face value per share is Rs 2.

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Flintham also said the promoters will continue to support the company just like that they have done over the last nearly 30 years.

Meanwhile, Amtek Auto on 10 September 2015 allotted 44.37 lakh equity shares at a price of Rs 169 per share to two promoter group companies by way of preferential allotment. The preferential share issue is in lieu of conversion of the outstanding amount of unsecured loans given by these two promoter group companies to Amtek Auto. Hence, the company will not get fresh funds from this preferential allotment.

It may be recalled that the shares of Amtek Auto witnessed a massive slide in mid-August 2015 after the National Stock Exchange (NSE) announced that the bourse has decided to exclude the Amtek Auto stock from its equity derivatives segment based on the stock selection/exclusion criteria prescribed by Sebi.

Amtek Auto reported net loss of Rs 157.60 crore in Q3 June 2015 as against net profit of Rs 86.08 crore in Q3 June 2014. Net sales declined 12.7% to Rs 854.22 crore in Q3 June 2015 over Q3 June 2014.

Amtek Auto is one of the largest integrated automotive component manufacturers in India with a strong global presence. Amtek Auto has a presence in forging, grey and ductile iron casting, gravity and high-pressure aluminum die casting and machining and sub-assembly. The company also manufactures components for non-auto sectors such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment. The company has manufacturing facilities in India, Europe and North America.

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First Published: Sep 11 2015 | 3:27 PM IST

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