Amtek Auto extends gain post clarification

The stock is trading higher by 11% to Rs 51.85, extending its Friday's 54% surge on the BSE.

Amtek Auto is trading higher by 11% to Rs 51.85, extending its Friday’s 54% surge on the BSE, after the company said it is considering various means to de-leverage the balance sheet including selling of noncore business.

The company is also considering de-leverage minority stake in overseas companies and some industrial real estate assets within the business.

“However, as on date, no negotiations are carried on. If any positive developments take place, the same will be intimated to the exchange as per the requirement of the listing agreement,” Amtek Auto said in a BSE filing.

In the past, the promoter has pumped in money in the company and if required, in future, may infuse more money in the company.

On Thursday, September 10, 2015, the board has allotted 4.44 million equity shares of face value of Rs 2 each at a premium of Rs 167 aggregating to Rs 75 crore to the promoter’s group companies by way of preferential allotment.

The stock hit a high of Rs 57.90 on the BSE intra-day trade. It gained over 100% from its 52-week low of Rs 25.60 touched on September 4, 2015.

JMT Auto and Metalyst Forgings, the other two Amtek Group companies, also locked in upper circuit of 5% each at Rs 57.10 and Rs 39.35 respectively.

Castex Technologies however locked lower circuit for 29 straight trading days, down 5% at Rs 36.45.

All these stocks had tanked more than 80% from their respective 52-week highs on debt worry.