Troubled auto components maker Amtek Auto is planning to raise Rs 117.5 crore by issuing equity shares to promoters on a preferential basis for which it will seek shareholders' approval.
The auto maker plans to issue maximum of 2.35 crore equity share at a price of Rs 50 per share including premium of Rs 48 aggregating to Rs 117.5 crore, it said in a BSE filing.
The company has called an EGM on March 25, 2017, to get approval from its shareholders for the proposal, it added.
On February 15, lenders of the company had asked it to either repay loans or convert the outstanding into equity shares or warrants.
Subsequently, the company's Board at its meeting on February 23 decided to convert amount due toward unsecured loan of Aisa International Pvt Ltd and Amtek Laboratories Ltd, promoters of the company on preferential basis to proposed allotees into the equity shares of the company.
"Further, the Board has also considered that in view of current financial situation and liquidity position of the company, it would be in the interest of the company to convert the unsecured loans due to the company of the promoters in equity shares, which will enhance the networth and financial ratio of the company," it added.
The auto component maker has been struggling to make a turnaround ever since it reported "temporary cash flow mismatch" in 2015 and defaulting on payment of an estimated Rs 800 crore bond.
It had even considered selling non-core business and minority stake in its overseas companies in order to de-leverage its balance sheet.
The company had reported widening of standalone net loss to Rs 241.56 crore for the quarter ended December 2016.
The company had posted a net loss of Rs 175.36 crore in the same quarter last fiscal. For the nine months period ending December 2016, the firm had posted a net loss of Rs 1316.42 crore.
Amtek Auto will also consider re-appointment of John Ernest Flintham as Vice Chairman and Managing Director of the company at the EGM.
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