Shares of Mahindra CIE Automotive and Amtek Auto have rallied by up to 11% on the BSE in intra-day trade on back of heavy volumes after media report suggests that Mahindra CIE amongst others interested in Amtek Auto's overseas assets.
Amtek Auto has surged 11% to Rs 50.30 on BSE in intra-day trade. Till 12:09 pm, a combined 8.23 million shares changed hands as against an average sub 5 million shares that were traded daily in past two weeks on the BSE and NSE.
Mahindra CIE Automotive rallied 7% to Rs 206 on BSE. The trading volumes on the counter jumped nearly five-fold with a combined 1.08 million shares changed hands on the BSE and NSE so far. The S&P BSE Sensex was up 0.14% at 28,284 points.
According to Business Standard reports, Mahindra CIE Automotive, the Indo-Spanish diversified auto component maker, is amongst the handful of companies who have shown interest in buying business assets of cash-strapped auto parts maker Amtek Auto. CLICK HERE TO READ FULL REPORT.
“The Exchange has sought clarification from Amtek Auto AND Mahindra CIE Automotive, with reference to news appeared in Business Standard dated October 4, 2016 stating "Mahindra CIE amongst others interested in Amtek Auto's overseas assets,” according to BSE website.
The reply is awaited.
In November 2015, Amtek Auto said it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan. The various options include a minority stake-sale of up to 25-40% in our overseas business.
“During the process the Company have received a large number of enquires for the outright purchase of a couple of the Company's Overseas businesses which include for instance Tekfor group. The interest for this has come from trade players and financial players around the globe. These businesses are located in a much coveted market attracting premium valuations in the global markets. As mentioned there are several options and it is a matter of right value-opportunity that will determine the eventual decision,” Amtek Auto said in a BSE filing on November 2, 2015.