Amtek Auto gains on reports it may sell German unit Tekfor

Amtek Auto rose 4.91% to Rs 36.35 at 11:35 IST on BSE on a media report that the company is close to selling its profitable German unit for about $700 million to a foreign buyer in order to cut its debt.

Meanwhile, the BSE Sensex was down 322.43 points, or 1.21%, to 26,313.32.

On BSE, so far 17.09 lakh shares were traded in the counter, compared with an average volume of 3.87 crore shares in the past one quarter. The stock hit a high of Rs 37.20 and a low of Rs 35.50 so far during the day. The stock hit a 52-week high of Rs 176.10 on 3 August 2015. The stock hit a 52-week low of Rs 25.60 on 4 September 2015. The stock had underperformed the market over the past one month till 10 June 2016, falling 2.26% compared with 3.28% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 9.83% as against Sensex's 7.76% rise.

The small-cap company has an equity capital of Rs 44.95 crore. Face value per share is Rs 2.

According to reports, debt-ridden automobile component maker Amtek Auto is close to selling its profitable German unit, Tekfor, for about $700 million (Rs 4690 crore) to an foreign buyer in a bid to reduce its debt.

The consolidated debt of the group is estimated to be about $2.2 billion (Rs 14700 crore). The group also plans to sell 50% share in a joint venture unit and a domestic food business, as well as raise funds from three overseas investors. It claims that after these deals are done, the debt of the company will come down by $1 billion (Rs 6700) in the next 12 months, the report added.

Amtek Auto reported net loss of Rs 528.69 in Q2 March 2016 compared with net profit of Rs 129.82 crore in Q2 March 2015. Net sales fell 33% to Rs 608.75 crore in Q2 March 2016 over Q2 March 2015.

Amtek Auto is one of the largest integrated automotive component manufacturers in India with a strong global presence. Amtek Auto has a presence in forging, grey and ductile iron casting, gravity and high-pressure aluminum die casting and machining and sub-assembly. The company also manufactures components for non-auto sectors such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment. The company has manufacturing facilities in India, Europe and North America.

Powered by Capital Market - Live News