Amtek Auto shares continue to rally; surge 13%

Shares of Amtek Auto surged 13 per cent today as promoters infused Rs 75 crore in the company and on news that it is considering selling non-core business, minority stake in overseas firm and some industrial real estate assets within the business to overcome the financial crisis.
The stock ended the day 13.06 per cent higher at Rs 52.80 on the BSE. During the day, it climbed 23.98 per cent to Rs 57.90.
At NSE, shares of the company advanced 12.46 per cent to settle at Rs 52.80.
The stock had on Friday surged a whopping 54 per cent.
In two days, the company's market valuation rose by Rs 494.28 crore to Rs 1,163.28 crore.

In a regulatory filing last week, Amtek said it has allotted 44,37,500 equity shares of face value of Rs 2 each at a premium of Rs 167 aggregating to Rs 74.99 crore to promoters group companies by way of preferential allotment.

Amtek Auto also said in a BSE filing, "as on date, the company is considering various means to deleverage the balance sheet, including selling of non-core business, minority stake in overseas companies and some industrial real estate assets within the business."
It, however, added: "As on date, no negotiations are carried on."
"In the past, the promoter has pumped in money in the company and if required, in future, may infuse more money in the company," it said.

It had attributed the reasons for its financial stress to the current market scenario "which caused decline in the sales and profit margins of the company".
Amtek Auto had also said it was exploring various means of fund raising.
Besides the financial problems, Amtek Auto has also been facing investigation by Sebi into alleged share price manipulation at its subsidiary Castex Technologies with role of banks, mutual funds and rating agencies also coming under the scanner.
Shares of Castex Technologies fell 4.95 per cent to Rs 36.45 -- its lower circuit limit.