Troubled auto components maker Amtek Auto has pledged its entire stake of nearly 71 per cent in group firm JMT Auto with IL&FS Trust Company (ITCL).
Amtek Auto has pledged 18,07,06,100 shares of JMT Auto, constituting 71.73 per cent stake, with the ITCL on December 29, JMT Auto today said in a regulatory filing.
Jamshedpur-headquartered, JMT Auto manufactures over 2,000 different components ranging from engine components, gears, shafts, pins, bushes, gear rings, axles among others.
It has seven manufacturing facilities spread across locations such as Jamshedpur, Dharwad and Lucknow.
In 2013, Delhi-based Amtek Auto had acquired controlling shares of JMT Auto thus bringing it under the Amtek Group umbrella.
Amtek Auto had defaulted on repayment of bonds worth Rs 800 crore in September, thus signaling a crisis.
The bonds matured in September, but Amtek Auto was unable to make repayments to its investors as it was facing a “cash flow mismatch”.
At one point, the company had said it was considering selling some assets to overcome the financial crisis.
Domestic subscribers to the bonds include Axis Bank, Karur Vysya Bank, Syndicate Bank and Corporation Bank.
Banks have an exposure of around Rs 8,000 crore to Amtek Auto, the flagship of the Amtek Group.
JMT Auto stock ended at Rs 90.50, down 1.09 per cent, on the BSE.