Castex shares slide 5%; Amtek Auto recovers amid Sebi probe

MUMBAI: Shares of Castex Technologies, a subsidiary of crisis-hit Amtek Auto, tumbled by five per cent today to Rs 40.35 amid regulator Sebi probing alleged rigging of the company's share price.

Castex shares have now declined for 43 consecutive sessions, tanking as much as 89 per cent since July 13.

The scrip fell by nearly five per cent today as the company announced that it has received conversion notices for bonds worth $80.2 million.

Today's closing level of Rs 40.35 is also the lower circuit limit.

However, the scrip of Amtek Auto managed to recover some of the lost ground and closed flat at Rs 30.40.

Sebi has begun a probe into alleged manipulation of the company's share price following complaints from some bondholders that they have been forced to convert bonds.

In a filing to the BSE, the company said it has allotted 3.95 crore equity shares at the fixed conversion price of Rs 103.005 per share, thereby effecting the conversion of the outstanding bonds worth $80.8 million out of the $130 million FCCB issue.

"The balance $0.6 million is also being converted by the company in accordance with the mandatory conversion notice and the conditions laid down in the bond document," it added.

In July, Castex had decided to mandatorily convert all the outstanding bonds of $80.80 million out of $130 million FCCB issue.

Meanwhile, the company today said it has already converted bonds of $49.2 million pursuant to various conversion notices received voluntarily in the past.

"With the present allotment of shares pursuant to conversion of bonds of $80.8 million, the issue of $130 million FCCB has fully been converted into shares of the company which has resulted in the conversion of debt of $130 million into equity," the filing added.

While Castex shares continued to take a beating, the scrip of its promoter Amtek Auto recovered some of the lost ground to settle almost flat at Rs 30.40 on the BSE after dropping 10.5 per cent in intra-day trade.

Over the last one month, Amtek Auto stock has plummeted more than 80 per cent.

Amtek Auto, an auto component maker, has been facing financial woes in recent times.