Amtek Auto skids 4%; pays back rich investors like Aishwarya Rai, David Dhawan not JPMorgan

Shares of Amtek Auto slipped over 5 per cent in trade on Tuesday after gaining 8 per cent in the previous session as hopes of the company reaching a deal with JPMorgan, a holder of the auto componet maker's non-convertible debentures (NCDs), diminished after reports suggested that the company favoured famous personalities such as Aishwarya Rai and David Dhawan over other lenders in paying back their dues.

The stock ended the day 4.83 per cent down at Rs 44.10 after hitting an intraday low of Rs 44.10, down 5.36 per cent, on the Bombay Stock Exchange (BSE).

On Monday, the stock jumped 8 per cent to close at Rs 49.30 after Business Standard reported that the company is close to reaching a solution with JPMorgan, which holds its non-convertible debentures (NCDs) worth Rs 200 crore.

The stock exchange has sought clarification from the company regarding the same report, but the reply is still awaited.
 
The stock took a beating in today's trade after a report by Economic Times suggested that banks and other lenders are irked by the company's move to selectively pay back bond holders, while all the holders must be treated equally since the underlying asset belongs to all.

Amtek Auto refused to shed light on the details of payments it made to rich investors.

"We cannot divulge any details of the agreement we got with anybody into the holding side," said John Flintham, vice-chairman at Amtek Auto, as reported by Economic Times.

"We cannot confirm or deny whether anybody got refund or not. We don't want to comment on any individuals. We cannot comment on it until we get everything cleared off," added the report.