Amtek Auto rallies on fund raising plans to cut debt

NEW DELHI: Shares of Amtek Auto rallied over 4 per cent in morning trade on Thursday after a media report said the loss-making car parts maker is looking to sell its German unit Tekfor.

Amtek, which is on a drive to cut debt, has appointed Morgan Stanley to organise the sale of the maker of driveline components formerly known as Neumayer Tekfor, Reuters said in a report quoting sources.

At 09:40 AM; Amtek Auto pared some of the morning gains but was still trading 2.3 per cent higher at 42.30. It hit a low of Rs 42.10 and a high of Rs 43 in the first hour of trade on the BSE.

"While precise earnings figures are not available and information packages have not yet gone out to potential bidders, one of the sources said his estimate for Tekfor's annual earnings before interest, taxes, depreciation and amortisation (Ebitda) was about 100 million euros," added the report.