Shares of ailing steel and auto ancillary companies Bhushan Steel, Monnet Ispat & Energy and Amtek Auto have rallied by up to 10%, extending their two-session long rally on BSE on the back of heavy volumes.
Amtek Auto rallied 10% for the second straight day, trading at Rs 30.85 on BSE. The stock of auto ancillary Company rallied 32% in the past three trading sessions from Rs 23.45 on July 19, after media report suggested that Bain Capital, TPG Capital DA Capital and Piramal Enterprises are in the fray to buy a stake in the debt-ridden Amtek Auto.
On clarification on the news report, Amtek Auto said that the secured lenders to the Company have already initiated process to seek substantial investments from the potential investor(s) in the company.
Castex Technologies (up 17% at Rs 9.37) and Metalyst Forgings (up 9% at Rs 45.15) are other Amtek Group companies, which rallied up to 17% on BSE, as compared to 0.42% rise in the S&P BSE Sensex at 09.36 am.
Bhushan Steel has surged 8% to Rs 83, after surging 20% on Wednesday. In the past three trading days, the stock zoomed 41% from Rs 59 on Monday. A combined 6.42 million equity shares changed hands in the first 25 minutes of trading on the BSE and NSE.
Monnet Ispat & Energy too soared 8% to Rs 44 in intra-day trade, extending its 37% rally of the past two trading sessions. The stock is trading close to its 52-week high of Rs 44.50 touched on May 17, 2017 in intra-day trade.
According to Business Standard reports, Lenders to Monnet Ispat on Tuesday gave the mandate to the State Bank of India, the lead lender, to move an application before the National Company Law Tribunal (NCLT) to start the resolution process for the company. CLICK HERE TO READ FULL REPORT.
Monnet Ispat on Friday, June 16, 2017 said that the company has not filed for bankruptcy. The reference of Monnet Ispat & Energy in the article is with reference to Gupta Coal, which has filed for bankruptcy and also supplied coal to Monnet Ispat & Energy at some point of time.
Therefore, the provisions of Regulation 30 of Listing Regulations, 2015 do not apply on the Company, with respect to the aforesaid news item, the company made clarification on new item appearing in 'Financial Chronicle', titled '32 firms file for bankruptcy'.
Company 19/06/2017 22/06/2017* % chg 52-wk high 52-wk low Castex Tech 5.56 9.44 69.78 16.87 5.25 Monnet Ispat 30.10 44.40 47.51 44.50 19.25 Bhushan Steel 58.90 83.00 40.92 102.80 36.70 Metalyst Forg. 34.35 45.65 32.90 93.25 32.50 Amtek Auto 23.45 30.95 31.98 56.20 21.25 *Intra-day high