Amtek Auto vrooms into green

Amtek Auto is amongst the top five gainers on the bourses currently, with the stock price up over 3% at Rs.39.20, with an intra day high at Rs.40.30.

The company announced yesterday after market hours that it has called for an Extraordinary General Meeting (EGM) on 25th March. The agenda is to get approval for its proposal to raise Rs.117.50 crore by issuing equity shares to two promoter companies - Asia International and Amtek Labs, on a preferential basis.

It plans to issue maximum of 2.35 crore equity share at a price of Rs 50 per share including premium of Rs 48 aggregating to Rs 117.5 crore.

This comes on the back of the lenders, on 15th Feb, asking the company to either repay the loans or convert outstanding equity shares into warrants. Obviously it has no money to repay and has thus opted for the latter option.

The company has a long road to recovery – its loss for Q3FY17 came in much higher at Rs.241 crore v/s Rs.175 crore and its loss for 9MFY17 stands at Rs.1316 crore.