Castex clarification lifts Amtek Auto shares, ends 6% higher

NEW DELHI: Shares of Amtek Auto surged as much as 7.66 per cent, after having declined 12 per cent in the previous session, as Castex Technologies clarified in a note to exchanges that there were no defaults on any FCCBs issued by the company.

The stock ended the day in green, up 6.21 per cent or Rs 8.30 at Rs 141.95.

Amtek Auto holds 71.2 per cent equity in Castex Technologies, which makes iron casting and machining part used in the auto industry.

Castex Technologies Ltd has clarified to BSE that the foreign currency convertible bonds issued by the company are due for repayment in September 2017. No FCCBs have matured for repayment and there are no defaults on any FCCBs issued by the company. News item suggesting trouble with bond holders is not correct and non-factual, added the note.

However, Castex Technologies slipped 5 per cent and was locked in lower circuit at Rs 168. It hit a low of Rs 168 and a high of Rs 172 in trade today.

As of March 2015, Castex Technologies' total debt was Rs 5,746 crore, up from Rs 5,185 crore in September 2014. Net profit in the last quarter of FY15 fell to Rs 3.4 crore (on a revenue of Rs 716.7 crore) from Rs 62.7 crore (on revenue of Rs 704 crore) in the year-ago period.

Amtek Auto shares had crashed 12 per cent on Thursday after traders got a whiff that the company's subsidiary Castex Technologies (formerly known as Amtek India) has failed to pay interest on bank loans, an ET report said.