Amtek Auto, Mahindra CIE soar up to 7% on asset deal buzz

NEW DELHI: Shares of Amtek Auto and Mahindra CIE Automotive rallied 7 per cent each on Tuesday on reports that the latter was interested in buying certain assets of Amtek Auto, which could cut the debt of the auto component maker.

Following the reports, the stock surged 11.28 per cent to hit a high of Rs 50.30 on BSE, before closing the day at Rs 48.45, up 7.19 per cent.

The stock hit a 52-week high of Rs 56.20 on July 26 this year.

Shares of Mahindra CIE Automotive, on the other hand, soared 6.61 per cent to Rs 204.90. The company recently bought the Bangalore-based Bill Forge for Rs 1,331 crore. A report, however, said the company had not yet got into a serious dialogue with the Amtek Auto promoters.

Amtek Auto reported a net loss of Rs 319.68 crore for the June quarter.

In September 2015, the company had failed to repay Rs 800 crore worth of bonds on maturity, following which JPMorgan Mutual Fund, which was holding the bonds, restricted withdrawals from two of its funds. The company has debt of about Rs 15,000 crore on its balance sheet, the media report suggested.