Morgan Stanley assists Amtek Auto in debt reduction plan; stock zooms 10%

The stock surged 15% to Rs 44.50 after the company said it has appointed Morgan Stanley as advisors to assist in the group's debt reduction plan.

Amtek Auto has surged 15% to Rs 44.50 on the BSE on back of heavy volumes after the company said it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan.

“The various options include a minority stake-sale of up to 25-40% in our overseas business,” auto parts & equipment makers said in a filing.

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, it added.

It further said 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, it added.

The Delhi-based automobile component maker had defaulted on repayment of foreign currency convertible bonds, signalling a crisis. CLICK HERE TO READ FULL REPORT.

At 11:27 AM, the stock was up 14% at Rs 44.15 on the BSE. The trading volumes on the counter more than doubled with a combined 15.76 million shares changed hands on the BSE and NSE so far.

JMT Auto (up 5% at Rs 60.20), Metalyst Forgings (5% at Rs 59.25) and Castex Technologies (5% at Rs 23.60) are other Amtek Group companies locked in upper circuit on the BSE.