Amtek Auto falls on NCLT’s approval for insolvency proceedings

NEW DELHI: Shares of Amtek Auto fell over 4 per cent on Tuesday after the debt-ridden auto component maker said that insolvency proceedings initiated by a consortium of banks led by Corporation Bank has been accepted by the National Company Law Tribunal (NCLT).

Following the development, the stock fell 4.98 per cent to end the day at Rs 29.60 on BSE. It opened at Rs 31 and touched an intraday high and low of Rs 31.20 and Rs 29.60 respectively.

In a filing to BSE the company said, "The application filed by Corporation Bank under section 7 of the Insolvency and bankruptcy Code, 2016... before NCLT, Chandigarh has been admitted by the tribunal."

For the quarter ended June 30th 2017, the company reported widening of standalone loss to Rs 889.58 crore, hit by exceptional inventory losses.

Separately, subsidiary of the company - Amtek Global Technologies would sell its UK-based subsidiaries' plants to the Liberty group.

"Amtek Global Technologies, a subsidiary of Amtek Auto has entered into an agreement to sell its UK-based subsidiaries' plants to the Liberty group," Amtek Auto informed the bourses.

The scrip touched its fresh 52-week high of Rs 56.20 on July 26, 2016 and its 52-week low of Rs 21.25 on June 20, 2017.