Amtek Auto spurts on reports Mahindra CIE interested in buying business asset

Amtek Auto rose 8.52% to Rs 49.05 at 10:03 IST on BSE on reports Mahindra CIE Automotive has shown interest in buying business assets of cash-strapped auto parts maker Amtek Auto.

Meanwhile, the BSE Sensex was up 92.02 points, or 0.33%, to 28,335.31.

On BSE, so far 10.73 lakh shares were traded in the counter, compared with average daily volume of 10.63 lakh shares in the past one quarter. The stock hit a high of Rs 50.30 and a low of Rs 48.20 so far during the day. The stock hit a 52-week high of Rs 56.20 on 26 July 2016. The stock hit a 52-week low of Rs 26.05 on 12 February 2016. The stock had outperformed the market over the past 30 days till 3 October 2016, rising 2.84% compared with 1.01% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.16% as against Sensex's 3.96% rise.

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

Shares of Mahindra CIE Automotive jumped 6.14% to Rs 204. According to reports, Amtek Auto is liquidating its overseas assets to bring down its debt of Rs 15000 crore. For this Amtek has been talking to companies in India and others global entities since the past several months. However, the deal has been repeatedly stuck over valuations. Mahindra CIE Automotive has not yet got into a serious dialogue with the Amtek Auto promoters, reports added.

The units up for grabs belongs to the Germany-based Amtek Tekfor Holding GmbH which makes parts for transmissions, engines and drivelines. The company has five plants in Europe, two in south America, two in Asia and one in North America. Its clients include Volkswagen Group, Fiat, BMW, Daimler to name a few, reports suggested.

Amtek Auto reported net loss of Rs 319.68 crore in Q1 June 2016 as against net loss of Rs 157.60 crore in Q1 June 2015. Net sales declined 36.80% to Rs 539.83 crore in Q1 June 2016 over Q1 June 2015.

Amtek Auto is one of the largest integrated component manufacturers in India with a strong global presence. It has also become one of the world's largest global forging and integrated machining companies.

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