Amtek Auto ends 8% up on reports company close to reaching solution with JPMorgan

Shares of Amtek Auto zoomed nearly 15 per cent in trade on Monday after a news report that the company is close to reaching a solution with JPMorgan, which holds its non-convertible debentures (NCDs) worth Rs 200 crore.

The stock ended 8.62 per cent up to Rs 49.30 after surging as much as 14.91 per cent to Rs 49.30, on Bombay Stock Exchange (BSE) .

The NCDs held by JPMorgan matured on September 20 but the auto component maker could not make repayments to its investors due to 'cash flow mismatch in the company'.

"We are talking to JPMorgan. We are together working to reach a solution. Within the next two weeks, we hope the matter will be resolved. There will be a solution to the satisfaction of JPMorgan and there will be no default," said Arvind Dham, chairman, Amtek Auto, as reported by Business Standard.

The stock exchange has sought clarification from the company regarding the same report.
 
Meanwhile, institutional investors cut their holdings in the Amtek Auto by a massive 14.38 per cent in the September quarter, leading to a 72 per cent drop in the market value of the stock, data available on the BSE website showed.

Institutional investors' total holding in the company slipped to 20.92 per cent as of September 30 from 35.3 per cent at the end of the June quarter. Foreign institutional investors (FIIs) reduced stake in the company to 13.17 per cent from 18.83 per cent during the quarter, while domestic institutional investors (DIIs) cut their combined holdings to 7.75 per cent from 16.47 per cent.