On 9 October, Brickwork Ratings India Pvt. Ltd downgraded non-convertible debentures (NCDs) worth Rs.484 crore issued by Amtek Auto to a D rating because of delays in servicing debt. Instruments with this rating are in default or are expected to be in default.
$AMTEKAUTO “We have a debt-reduction program,” John Flintham, the company’s senior managing director told Bloomberg TV India. “We will sell minority stake in overseas businesses, which are profitable and owned 100 percent by Amtek Auto.” Sales of non-core assets may fetch about $500-600 million, he said.
The stock surged 54 percent to 46.95 rupees at the close.
The component maker said it is exploring various means of fundraising. "There is temporary cash flow mismatch in the company and to mitigate the present situation, the promoters have already infused Rs 75 crore and if required in future will also infuse more funds. The company is also exploring various means of fundraising," the statement said.
Amtek Auto stock price chart
Amtek Auto financials
About Amtek Auto
Amtek Auto Limited manufactures and sells automotive components in India and internationally. Its product portfolio includes flywheel ring gears, such as starter ring gears, flex plate assemblies, flywheel assemblies, and conrod piston sub assemblies; and machining products comprising steering knuckles, ladder frames, engine bearing ladders, exhaust manifolds, aluminum case housings, bridge fork assemblies, hubs, spindles, connecting rods, crankshaft assemblies, housings, gear shifter forks, front axle beam assemblies, pivot arms, flywheel housing and assemblies, wheel hubs, PTO casing, front axle beams, and front and rear axles. The company also provides forging products consisting of connecting rods and caps, crankshafts and camshafts, steering levers, gear shifter forks, sector gears and shafts, front impact beams drive shafts, spindlers, hubs and flanges, transmission components, steering parts, pistons, propeller fork shafts, stub-axles, front axle beam, and front and rear axle shafts; casting aluminum products, including clutch cases, transmission cases, timing chain covers, mounting brackets, camshaft covers/carriers, bearing ladders/sumps, structural covers, and differential flanges; and casting iron products, such as cylinder blocks and heads, transmission housings, brake carriers and calipers, trumpet casings, crankshafts, intake and exhaust manifolds, flywheels and flywheel housings, turbo chargers, bell housings, and link shafts. company offers its products for passenger cars, two or three wheelers, and light and heavy commercial vehicles; and tractors, locomotive components, railways, construction and earth moving vehicles, aerospace, and oil and gas. Amtek Auto Limited was incorporated in 1988 and is based in New Delhi, India.