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Mumbai: Shares of Amtek Auto Ltd plunged 43% in intra-day trade on Thursday, their steepest fall since at least January 1991. Amtek shares have now fallen for four straight sessions, on the back of heavy volumes.

The stock fell over 39% on Wednesday after BSE and the National Stock Exchange (NSE) excluded the futures and options contracts of the stock from their equity derivatives segment, effective 30 October.

Stocks of other Amtek Group companies were also under pressure. Amtex Auto erased some of the early losses, but still closed 28.37% lower at 63.75.

Castex Technologies Ltd fell for the 28th consecutive session to close at 86.45, down 5%, Metalyst Forgings Ltd fell for the second consecutive session to end 10% lower at 73.60, Rollatainers Ltd fell 5% to 105.80 and JMT Auto Ltd fell 5% to 111.20.

BSE’s benchmark Sensex fell 1.16% to 27,607.82 points.

The stocks have been on a downward spiral on continued worries over reports of liquidity issues at the company. The debt-to-equity ratio of Amtek Auto stood at 1.5 times, while that of group company Castex Technologies was at 2.3 times, at the higher end, compared with most of their industry peers.

On 7 August, Care Ratings had suspended ratings of Amtek Auto. “The ratings have been suspended as the company has not furnished the information required by Care for monitoring of the rating," Care Ratings had said in a release.

Month-to-date, Amtek Auto fell 62.61%, Castex Technologies eroded 51.1%, Metalyst Forgings nosedived 41%, Rollatainers fell 33.5% and JMT Auto was down 3.6%, while Sensex fell a mere 1.3%.

Amtek Auto reported a net loss of 157.60 crore in the June quarter and net sales was at 854.22 crore. As of March, the company has a total debt of 7,844.12 crore.

Castex Technologies reported a net loss of 105.58 crore in the June quarter and the net sales figure was at 652.60 crore. As on March, the company had a total debt of 5,746.20 crore.

On Wednesday, Amtek Auto attributed the fall in the stock price to just bad earnings and exclusion from the derivatives segment.

“We had a bad quarter. The exclusion from F&O turned out to be just another reason," Gautam Malhotra, managing director at Amtek Auto, had said in a phone interview, adding that traders must have been squaring up their positions.

Malhotra denied it has anything to do with any potential FCCB (foreign currency convertible debentures) default at Castex Technologies, in which Amtek Auto holds 49% stake. “It will be up for repayment only in 2017, so there’s no question of a default," he said.

At a consolidated level, Amtek has a debt of 13,000 crore (excluding Castex).

Malhotra said the company is working on a debt reduction programme and plans to reduce it by at least 1,500 crore-2,000 crore over the next couple of years, and this would include additional infusion by the promoters and the company raising more funds. The promoters have infused 75 crore. and will infuse another 75 crore in the next two months, said Malhotra.

Other group companies did not fare any better in the quarter ended June.

Metalyst Forgings reported a net loss of 66.23 crore in the June quarter and net sales was at 546.87 crore. As on March, the company had a total debt of 2,324.40 crore.

Rollatainers Ltd reported a net profit of 1.45 crore in the June quarter and its net sales was at 42.95 crore. As on December, the company had a total debt of 158.79 crore.

Debt-laden companies were also fell on the back of higher volumes. IL&FS Transportation Networks Ltd fell 12.54%, Jaiprakash Associates Ltd fell 7.67%, Indiabulls Real Estate Ltd fell 9.29%, Jindal Steel and Power Ltd fell 8.23%, Jaiprakash Power Ventures Ltd fell 7.91% and Jaypee Infratech Ltd fell 6.65%.

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