Trending Small Cap Stock: Amtek Auto under debt trap
DSIJ Intelligence / 19 Jul 2017
The debt-ridden subsidiary of Amtek Auto; Amtek Global Technologies owes KKR close to $450 million which is a global private equity giant.
The debt-ridden subsidiary of Amtek Auto; Amtek Global Technologies owes KKR close to $450 million which is a global private equity giant.
KKR has also launched the insolvency proceedings against the international subsidiary of Amtek Auto Ltd.
However, Amtek auto has taken a move to convert Rs.95 crore loans into share in the company as the management has called up a shareholders meeting to take their view in the form of votes to find a permanent resolution to convert the unsecured loan given by Assets Care and Reconstruction Enterprise Ltd.
Proxy advisory firm Stakeholders Empowerment Services (SES) said Amtek Auto has formerly received several such unsecured loans from promoters -Aisa International Pvt. Ltd and Amtek Laboratories Ltd— which were soon after converted into equities.
However, the conversion of equity will be advantageous for the shareholders or not is totally depended on whether Amtek goes into liquidation or settles with lenders.
Currently, the Company is involved in the business activities of manufacture of fibre optic cables for data transmission or live transmission of images.
On today’s trading day, the stock has opened at Rs.29.50 per share and touched a high/low of Rs.30.15/Rs.29.50 respectively and at 12:57 pm the stock is quoting at Rs.29.75 per share.
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