Amtek Auto shoots up 54% after management clarification

NEW DELHI: Shares of Amtek Auto shot up about 75 per cent in trade on Friday after the company management denied rumours about bankruptcy and assured cooperation with Sebi in its probe into the stock rigging charges.

The stock hit an intraday high of Rs 53.15, up 74.84 per cent, on the BSE. However, some profit booking was observed on the counter towards the close of the session. The auto ancillary stock eventually closed the day at Rs 46.70, up 53.62 per cent.

"The promoters have always and will always continue to support the business just like that they have done over the last nearly 30 years," said John Flintham, Senior MD, Amtek Auto.

Castex Technologies, an auto parts maker and subsidiary of debt-laden Amtek Group, is under Sebi investigation for alleged share price manipulation.

Sebi is examining trading details of Castex shares after some of the bondholders of the company alleged price manipulation with an aim to push it up to trigger the mandatory conversion of foreign currency convertible bonds (FCCBs).

Castex on Thursday informed the stock exchanges that it had allotted equity shares to investors following a conversion of its foreign currency convertible bonds. Shares of this Amtek Auto subsidiary have been on a falling spree for almost one-and-a-half months now. The stock had plunged 5 per cent on Thursday after Sebi began a probe into alleged manipulation of the latter’s stock price.

Meanwhile, reports said lenders of Amtek Auto have decided to go for a special audit of the books of various group companies before providing fresh loans to help it repay the Rs 800 crore bonds coming up for redemption on September 20.