Amtek stock up 8% on fresh equity investment proposal

Delhi-based auto component maker Amtek Auto’s stock price surged nearly eight per cent after the debt ridden company said its board has approved proposals from overseas investors to infuse fresh capital.

These investors, the company said will also invest equity in other group companies like Metalyst Forgings and Castex Technologies. A join board meet of all companies was held today.

“The proposed plan also envisages a broader corporate restructuring involving the consolidation of the domestic business and the ongoing asset monetisation to support the proposed plan,” the company said. At 3 pm, the stock price of Amtek Group’s flagship company Amtek Auto was up 7 per cent at Rs 42.90 on the BSE.

The company said details of the equity infusion and the restricting of debt as well as corporate restructuring shall be shared after it receives approval from lenders and shareholders. Amtek Auto’s consolidated debt stood at Rs 14,500 crore as of March 2016. A company spokesperson said the debt will go down ‘significantly’ post these exercises.