Shares of Amtek Auto plummeted 11.5 per cent on Tuesday amid reports that the company has missed payments on the Rs 800 crore worth of bonds that matured on Monday.
After falling sharply by 19.94 per cent to Rs 41.55 in intra-day trade on BSE, the stock ended at Rs 45.95, down 11.46 per cent. On NSE, it tumbled 11.57 per cent to Rs 45.85 at close. The company’s market valuation fell Rs 130.64 crore to Rs 1,012.36 crore.
On the volume front, 71.74 lakh shares of the company changed hands at BSE and over 2.9 crore shares at NSE during the day. The auto component maker, which was to redeem the five- year bonds, did not make the payments, media reports said.
Meanwhile, BSE has sought clarification from Amtek Auto on the matter. The company had last month informed stock exchanges about a temporary cash flow mismatch.
The stock has been on the backfoot amid weak June quarter results, debt worries and exclusion from the futures and options segment. In the stock market, the BSE Sensex plunged 541.14 points to settle at 25,651.84.
Meanwhile, Amtek Auto on Tuesday said it is in advanced discussions with various banks and financial institutions for realignment of its debt obligations. On a day when its shares tanked a further 11.46 per cent to Rs 45.95 following reports of the company defaulting on a Rs 800 crore bond payment, Amtek <g data-gr-id="41">Auto however</g> did not share further details.
“We wish to clarify that the company is in advanced discussions with various banks and financial institutions for realignment of its debt obligations,” the company said in a filing to BSE. The
deadline for redeeming five-year bonds had expired on Sunday and the company did not make payments.
Earlier this month, the troubled auto components maker had said it was considering to sell non-core business, minority stake in overseas firm and some industrial real estate assets within the business to overcome the financial crisis it was facing.
Last month, the company said there is “temporary cash flow mismatch” and to mitigate the situation, promoters have already infused Rs 75 crore and if required, will infuse more funds in future. The company attributed its financial stress to the current market scenario “which caused <g data-gr-id="69">decline</g> in the sales and profit margins of the company”.
Besides the financial problems, Amtek Auto has also been facing investigation by Sebi into alleged share price manipulation at its subsidiary Castex Technologies with <g data-gr-id="38">role</g> of banks, mutual funds and rating agencies also coming under the scanner.
The capital market regulator has started an investigation into possible rigging of Castex Technologies’ share price through forcible conversion of foreign bonds.