Amtek Auto, whose shares have been under pressure since last few months on debt default worries, jumped as much as 19 per cent on Monday after Business Standard newspaper reported that the auto component maker is close to reaching a deal with JP Morgan Asset Management Company, which holds its non-convertible debentures worth Rs 200 crore.
"We are talking to JPMorgan. We are together working to reach a solution. Within the next two weeks, we hope the matter will be resolved. There will be a solution to the satisfaction of JP Morgan and there will be no default," Business Standard quoted Arvind Dham, chairman of Amtek Auto, as saying.
In 2010, Amtek Auto had issued non-convertible debentures (NCDs) worth Rs 800 crore, which were due for repayment on September 20 but Amtek Auto did not make the payment. JP Morgan had bought Rs 200 crore worth of NCDs of Amtek Auto from open market.
In September, JP Morgan AMC had segregated assets exposed to Amtek Auto from other assets as its funds witnessed huge redemption.
Amtek Auto is struggling under huge debt because of its aggressive growth strategy involving a number of acquisitions. As of June 30, 2015, the standalone debt of Amtek Auto was Rs 12,430 crore.
The company had earlier notified stock exchanges about "temporary cash flow mismatch."
Amtek Auto's global CEO John Flintham had earlier told NDTV that the company was in talks for resolving the liquidity problems.
Amtek Auto shares closed 8.74 per cent higher at Rs 46.65 apiece compared to 0.45 per cent gain in the broader Nifty. 46.31 lakh shares changed hands in the counter on Monday against its two-week average trading volume of 22.38 lakh shares.
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