Amtek Auto looks to sell non-core business, stake in overseas firms

Troubled auto component maker Amtek Auto said on Wednesday it is considering selling non-core business and minority stake in its overseas companies in order to deleverage its balance sheet.

"The company is considering various means to deleverage the balancesheet by selling of non-core business, minority stake in its overseas companies and sale of industrial real estate assets within the group business," Amtek Auto said in a regulatory filing.

However, as on date, nothing has been finalised as yet, the company added.

Last year, the company had appointed Morgan Stanley as an advisor to assist in its debt reduction plan.

The Amtek group is understood to owe over Rs 26,000 crore to 32 banks, including State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank, Bank of Maharashtra and UCO Bank.

Besides the financial problems, Amtek Auto has been facing investigation by Sebi into alleged share price manipulation at its subsidiary, Castex Technologies, with role of banks, mutual funds and rating agencies also coming under the scanner.

The stock ended at Rs 50.65 on BSE, down 1.84 per cent, from its previous close.