Amtek Auto shares soared as much as 75 per cent intraday on Friday on reports that the company may look to sell stakes in overseas business to shed debt. However, the scrip closed 53.62 per cent higher at Rs 46.70 on BSE. The share price of the company opened at Rs 32.50 and touched a high and low of Rs 53.15 and Rs 32.20, respectively, in the day.
Company’s managing director John Flintham told to a news channel that the company may look to sell stakes in overseas business to pare debt.
He added that promoters will continue to support the business and will pump in money if required. Accounts with all banks are in standard position. There is no question of defaulting on our commitments to banks.
The share price of the company declined over 70 per cent in the past one month till September 11.
In another TV interview, John Flintham said, the company will resolve the bond issue in a few weeks.
Amtek Auto’s debt to equity ratio of about 1.5 is among the highest for auto component makers across emerging economies in Asia Pacific, according to StarMine.
(With inputs from Reuters)