Amtek Auto breaches UC

Amtek Auto breached the upper circuit at Rs.25.05 and so did its subsidiaries – Castex Technologies rose almost 5% and Metalyst Forgings rose 5% too; all three breaching the UC.

The stock prices rose on news that Deccan Value, the US hedge fund has emerged as the highest bidder and the other one in the race is Liberty House, which has bid for Bhushan Steel too.

The company is facing bankruptcy proceedings as it has defaulted to the tune of Rs.12,700 crore. And all the three companies together has a debt of Rs.22,000 crore.

Even if the bid is accepted, though it augurs well for the company, for the banks, they will be able to recover just 35%.