Shares of Amtek Auto, which have been in the news for debt/solvency worries and exclusion from the derivatives segment, zoomed to gain as much as 70 per cent intraday on Friday after the company management gave assurances to various media on a number of issues.
A combined 111 million shares, representing 50 per cent of the total equity of Amtek Auto, changed hands on the NSE and the BSE today.
However, the company’s shares ended up only 49 per cent on profit-booking.
The company management announced its intention to sell stake in the overseas subsidiary to cut debt and resolve the bond issue in a few weeks. Meanwhile, the company has allotted 44.37 lakh equity shares of face value ₹2 each at a premium of ₹167 a share aggregating to ₹74.99 crore to promoter group companies by way of preferential allotment.
It also denied rumours about bankruptcy and assured cooperation with SEBI in its probe into the stock rigging charges.
The stock has been under pressure in the last one month, crashing over 80 per cent due to various reasons, such as concerns surrounding its debt, weak results and exclusion of the stock from the derivative segment. The NSE in August announced the exclusion of the stock from the F&O segment beginning October 30.
Group companies’ stocks Meanwhile, its subsidiary, Castex Technologies was down 5 per cent, locked in at the lower circuit, on overhang of the SEBI investigation for alleged share price manipulation. But JMT Auto and Metalyst Forgings, the other two Amtek Group companies, ended up 5 per cent each.