Amtek Auto shares gain 11% on reports Mahindra CIE may come to rescue

Shares of Amtek Auto rose over 11 per cent in trade on Tuesday following news reports that Mahindra CIE Automotive has shown interest in buying the business assets of cash-strapped auto component maker.

Reacting to the news, the stock of Amtek Auto surged as much as 11.28 per cent, while stock of Mahindra CIE Automotive gained 7.18 per cent on the BSE.

Investment bankers responsible for the sale, have made presentations to top management of Mahindra CIE, said Business Standard quoting an industry source.

Meanwhile, stock exchange BSE has sought clarification from Amtek Auto and Mahindra CIE, with reference to the same news.

Amtek Auto defaulted in August last year. The company had a standalone gross debt of Rs 9,035 crore at the end of March 2015, up from Rs 7,779 crore at the end of March 2014.