Amtek Auto surges 75% on mgmt confidence
Shares of debt-laden Amtek Auto saw a sharp upmove late Friday afternoon. Share is currently ruling higher by 75%, up by almost Rs. 23 at Rs. 53.35, on NSE. A total of 5.4 crore shares have changed hands on NSE and another 1.4 crore on BSE, against two week average volumes of 2.7 crore. Most of the surge in share price and volumes have come in after 2 pm today.
While news reports this morning suggested deeper financial issues in Amtek Auto, besides debt repayment, such as inventory losses and contraction in operating margins, the management seems very confident about its businesses (in India and overseas) and the inherent financial strength. In a TV interview, it expressed confidence to meet Rs. 800 crore bond repayment, falling due next week on 20th September. Also, it attributed the sharp fall in share price in the past 3 weeks to the stock’s F&O exclusion after 29th October.
Today’s rise in Amtek Auto share price is as sharp and as unexpected as the fall. How many expected this?