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Last Updated : Mar 07, 2017 05:44 PM IST | Source: Moneycontrol.com

Amtek Group stocks surge 3-11% following merger buzz

The Group in its Board Meeting last week is said to have decided to undertake restructuring. The group is reportedly planning to merge three firms and aims to cut debt by Rs 10,000 crore.

 
 
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Shares of Amtek Group companies saw a spike, following reports of a possible merger of its units in a bid to reduce its debt.

Amtek Auto rose over 4 percent intraday on Monday before falling 2 percent. Meanwhile, Metalyst Forgings and Castex Technologies surged 3.2 percent and 11 percent, respectively.

Over a series of board meetings of the Group last week, it was decided to undertake a restructuring activity of these companies, according to reports on CNBC-TV18.

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The Group, laden with high debt, seeks to undertake this merger to reduce this liability. Currently, Amtek Auto has debt to the tune of Rs 13,500 crore.

There are reports, according to the channel, that all three firms will be merged into one and that a new investor is expected soon.

Banks too have given their approval to the company’s restructuring and revival plan. If the merger goes through, the company’s collective debt could come down to Rs 3,500 crore, which could be a huge leg-up for the stock.

Amtek Auto has gained over 10 percent over the past one week. At 12:32 hrs, it was quoting at Rs 37.65, down Rs 0.20, or 0.53 percent on the BSE. It touched an intraday high of Rs 39.40 and an intraday low of Rs 37.10. Meanwhile, Metalyst Forgings was quoting at Rs 62.25, down Rs 0.20, or 0.32 percent on the BSE. It touched an intraday high of Rs 64.45 and an intraday low of Rs 62.25. Castex Technologies has risen the most among the Group stocks. In the past one week, the stock has risen over 16 percent, while its 3-day gain stands at 9.52 percent. The stock was quoting at Rs 9.32, up Rs 0.34, or 3.79 percent on the BSE. It touched an intraday high of Rs 9.98 and an intraday low of Rs 9.21.

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First Published on Feb 27, 2017 01:51 pm
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