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Amtek Auto surges on debt reduction plan

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Capital Market
Last Updated : Nov 03 2015 | 5:48 PM IST

Amtek Auto rose 13.31% to Rs 43.85 at 11:59 IST on BSE after the company said it has appointed Morgan Stanley as advisors to assist in the group's debt reduction plan.

The announcement was made after market hours yesterday, 2 November 2015.

Meanwhile, the BSE Sensex was up 128.74 points, or 0.48%, to 26,687.89.

On BSE, so far 34.92 lakh shares were traded in the counter, compared with an average volume of 33.30 lakh shares in the past one quarter.

The stock hit a high of Rs 44.50 and a low of Rs 40 so far during the day. The stock hit a 52-week high of Rs 231.25 on 13 November 2014. The stock hit a 52-week low of Rs 25.60 on 4 September 2015.

The stock had underperformed the market over the past one month till 2 November 2015, sliding 9.15% compared with 1.29% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 77.19% as against Sensex's 5.53% decline.

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The small-cap company has an equity capital of Rs 44.95 crore. Face value per share is Rs 2.

Amtek Auto said the various options include a minority stake-sale of upto 25-40% in its overseas business. During the process the company have received a large number of enquires for the outright purchase of a couple of the company's overseas businesses, which include for instance Tekfor group. The interest for this has come from trade players and financial players around the globe. These businesses are located in a much coveted market attracting premium valuations in the global markets. As mentioned there are several options and it is a matter of right value-opportunity that will determine the eventual decision, the company said in a statement.

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: Nov 03 2015 | 12:06 PM IST

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