Amtek Auto tumbles on default fears

NEW DELHI: Shares of Amtek Auto tumbled over 13 per cent in Monday's trade amid fears that the company would default on its debt payment maturing next month.

The stock, which has lost over 80 per cent of market capitalisation in one month, lost 13.43 per cent to hit a low of Rs 28.35 on BSE within the first hour of trade.

An ET report on Monday suggested that more than 80 investors, including Axis Bank, Karur Vysya, Syndicate, Corporation Bank and some pension funds, are staring at a knock of at least Rs 800 crore on their books in the September quarter, as the beleaguered company is likely to fail to reschedule its payments.

"They are asking for a restructure, but it won't be possible given that there are more than 80 investors," said a banker who did not want to be identified. "There are just about 10 banks owning the bonds. So they can't determine what should be done," the report said, citing people familiar with the development.

The company has a debt of around Rs 17,661 crore on its books. It reported Rs 157.6 crore loss in the June quarter, compared with a net profit of Rs 86.1 crore a year ago.

Meanwhile, the rub-off effect was also seen on other Amtek group stocks. Castex Technologies (Erstwhile Amtek India) declined 5 per cent. JMT Auto and Metalyst Forgings declined 5 per cent each.