Amtek Auto shares nearly double in a day on reports of stake sale in overseas business to pare debt

Amtek Auto shares zoomed as much as 80 per cent in a day on media report that the company was looking to sell its stake in foreign business to pare debt. Moreover, the company announcement to allot Rs 75 crore worth of equity shares to the promoters on preferential basis also sent the share price spiraling up.

The shares of the company closed 53.62 per cent up at Rs 46.70 apiece. The company logged in its biggest single day gain ever.

BSE has sought clarification from Amtek Auto with reference to the news as reported by ET NOW on Friday wherein its managing director John Flintham said the company was "open to selling minority stake in some assets." Flintham told the news channel that the company can consider selling some minority stake in some overseas business and is looking to sell select industrial plants for which the negotiations are going on. He added that the promoters may pump more money into Amtek Auto and the company will clarify its financial position in next few days, according to the media report.

The company is still to reply to BSE on the same.

The company informed BSE that the allotment committee of board of directors in their meeting held on Thursday allotted 44.37 lakh equity shares of face value of Rs 2 each at a premium of Rs 167 aggregating to Rs 75 crore to the promoters' group companies by way of preferential allotment.

In the past one month the Amtek Auto shares had plummeted 82 per cent from Rs 165 to Rs 30 till Thursday after the firm reported net loss of Rs 158 crore for the quarter ended June 2015.