Considering selling non-core biz, real estate: Amtek Auto

Troubled auto components maker Amtek Auto is considering selling of non-core business, minority stake in overseas firm and some industrial real estate assets within the business to overcome financial crisis it is facing.
"As of date the company 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," Amtek Auto said in a BSE filing.
It, however, added: "As on date, no negotiations are carried on."
"In the past, the promoter has pumped in money in the company and if required, in future, may infuse more money in the company," it said.

Last month the company had said there is "temporary cash flow mismatch" and to mitigate the situation, promoters have already infused Rs 75 crore and if required in future will also infuse more funds.
It had attributed the reasons for its financial stress to the current market scenario "which caused decline in the sales and profit margins of the company".

Amtek Auto had also said it was exploring various means of fund raising.
Besides the financial problems, Amtek Auto has also been facing investigation by Sebi into alleged share price manipulation at its subsidiary Castex Technologies with role of banks, mutual funds and rating agencies also coming under the scanner.

The capital market regulator has started an investigation into possible rigging of Castex Technologies' share price through forcible conversion of foreign bonds.
While it has taken a serious note of the allegations, sources said Sebi has expanded the probe into the matter suspecting that more players could be involved in efforts to manipulate the share price of Castex Technologies.
Besides promoters of the company, Sebi is now looking at the possible role of banks, mutual funds and rating agencies in the whole issue.
Shares of Amtek Auto closed at Rs 46.70 per scrip today, up 53.62 per cent.