Shares of Amtek Auto are the top loser on the National Stock Exchange. Know why

Shares of Amtek Auto Ltd., an ancillary for vehicle makers, was the top loser on the National Stock Exchange with very heavy volumes as investors exited the company on fears of a debt default.

Amtek Auto slumped to its lowest level since October 2003. The stock was trading at 169 rupees on August 10th. It quotes at 34.25 rupees, down a whopping 30 percent, or 14.35 rupees. More than 2.75 crore Amtek shares were traded on the NSE versus a 5-day average of 62.8 lakh shares.

Its group companies Metalyst Forgings and Castex Technologies remained under the bear grip as well.

The Amtek group has been sitting on a debt pile of more than 15,000 crore rupees. Amtek Auto announced a disastrous set of quarterly numbers earlier in August, slipping in the red as sales in major geographies dropped. That prompted fears of a payment crisis on the financial costs side, leading to a sharp sell-off on the stock.

Metalyst Forgings dropped 2.4 rupees, or 5 percent, to 46.10 rupees. 4.61 lakh shares were traded versus 5-day average of 1.96 lakh shares.
Castex Technologies fell 2.70 rupees, or 5 percent, to 52.10 rupees. 11,710 shares were traded versus the 5-day average of 5,470 shares

The management has injected 75 crore rupees of its own funds into Amtek's equity capital, but that hasn't soothed investor nerves.

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