Amtek Auto shares collapse over 60 per cent in two trading sessions

The shares of the Amtek Auto crashed about 60 per cent in two trading sessions and also touched a six year low on Thursday (20th August) in the Bombay Stock Exchange (BSE). In response to the NSE's annoucement of removal of the stock from Future & Option (F&O) segment with effect from October 30, 2015. The shares closed at Rs 128.55 on Tuesday (18th August) and touched Rs 50.70 on Thursday in the BSE's morning session.

Amtek Auto is a flagship company of Amtek group, other subsidiaries of the group includes Castex Technologies and JMT Auto. Castex Technologies hit the lower circuit twenty seventh day continously and JMT Auto also declined about 5 percent to lock in lower circuit on Thursday.

Earlier, Amtek Auto announced its June 2015 quarter results. The company registered a huge loss of Rs 157.6 crore in April-June quarter as against net profit of Rs 86 crore in the same period last year. Loss led by the company's 18.61 per cent decline in revenue to Rs 866 crore and a 106.17 per cent increase in its interest expenses to Rs 236.54 crore in April-June quarter on against the corresponding quarter of the previous financial year.

In May 2015 Amtek Auto signed an agreement to acquire Germany-based Rege Holding GmbH (Rege) for an undisclosed amount and the aquisition is expected to close by August 2015. Also in June Amtek Auto completed acquisition of the iron & aluminium casting, forging and machining business of Japanese company Asahi Tec Corporation. Asahi Tec Corporation has three manufacturing facilities in Japan, two in Thailand and a strategic holding in a joint venture in China.

An aggressive acquisitions strategy in recent times resulted in a huge debt on its books and as per the media reports Amtek group's total debt stands at about Rs 25800 crore in its books.

Amtek Auto is one of the largest automotive components manufacturers in India. The Company is engaged in forging, grey and ductile iron casting, gravity and high pressure aluminum die casting and machining and sub-assembly. It has a product portfolio with a range of engineered components, including flywheel ring gears, machining, forging, casting aluminum and casting iron. The Company has facilities across India, the United Kingdom, Germany, Brazil, Italy, Mexico, Hungary and the United States. It also manufactures components for non-auto sectors, such as the railways, specialty vehicles, aerospace, agricultural and heavy earth moving equipment.