Amtek Auto surges 9% as JP Morgan recovers 85% dues

NEW DELHI: Shares of Amtek Auto surged over 9 per cent in Tuesday's trade after JPMorgan debt fund announced that it would be able to redeem 85 per cent of its value from the bonds of the auto component maker, bringing some relief to investors.

Reacting to the development, the scrip surged 9.34 per cent to hit a high of Rs 51.54 on the BSE.

In a communication to the unit holders put up in the website, the fund house said it sold its segregated assets in full on December 5, which has allowed unit holders to place redemption requests from December 7, said a report in Economic Times.

"After this sale, investors would lose 1.5-2 per cent of their capital in the short-term fund and close to 1 per cent in the treasury fund," says Manoj Nagpal, CEO of Outlook Asia Capital.

In September, JP Morgan had split two of its schemes, which held the Amtek bonds into two separate funds. The segregated funds held bonds of debt-ridden Amtek, which failed to repay its debtors.