Amtek Auto shares fell as much as 19.9 per cent in the opening trade on Tuesday on media reports that the company had missed payments on the Rs 800 crore worth of bonds that matured on Monday.
However, the share price of the company recovered some losses after opening in deep red and was trading 7.71 per cent lower at Rs 47.90 at 9.43 am (IST) on BSE. The scrip opened at Rs 46.75 and had touched a high and low of Rs 49 and Rs 41.55, respectively, in trade so far. Sensex was up 60.69 points, or 0.23 per cent, at 26253.67.
Later, the scrip closed 11.46 per cent down at Rs 45.95. Sensex lost 541 points at 25,652.
For the year ended September 2014, the company’s standalone total debt stood at Rs 7,779.37 crore, up from Rs 6,757.07 crore last year. In the three months to June 2015, it reported a net loss of Rs 157.60 crore on the back of Rs 866.32 crore in revenues with the interest outgo at Rs 236.54 crore.
Company’s managing director John Flintham had recently told a business news channel that the company may look to sell stakes in overseas business to pare debt. “We have a debt-reduction programme,” Flintham told the channel.
“We will sell minority stake in overseas businesses, which are profitable and owned 100 per cent by Amtek Auto.” Sales of non-core assets may fetch about $500-600 million, he said.
In the past two months, the share price of Amtek Auto declined 69 per cent to Rs 51.90 on September 21 from Rs 167.65 on July 21. Sensex plunged 7 per cent during the same period.
Amtek Auto, part of the Amtek Group, is headquartered in New Delhi and is an integrated automotive component manufacturers in India. The company has facilities in India, Europe and North America and manufactures components for auto as well as non-auto sectors such as the railways, speciality vehicles, aerospace, agricultural and heavy earth moving equipment.