Amtek Auto shares plunge over 11% on loan default buzz

Shares of Amtek Auto plunged over 11 per cent in the morning trade on Tuesday after reports came that the company has defaulted on a bond payment.

The Economic Times reported that the company has missed payments on the Rs 800 crore worth of bonds that matured on Monday, potentially exposing the Indian banking system to a near Rs 8,000 crore of loans which may have to be classified as bad loans if the company does not quickly make payments.

Shares of the company closed lower by 11.46 per cent at Rs 45.95 apiece on Tuesday.