Castex Tech surges 10% as UK court rules in favour of the company in FCCB case

NEW DELHI: Shares of Castex Technologies closed with gains 9.89 per cent in Friday’s trade after a UK court ruled in favour of the tech company in the foreign currency convertible bonds (FCCB) case. Reacting to the development, the stock gained 9.88 per cent to hit a high of Rs 7.78 on the BSE.

In filing to the stock exchange, the company said: “Castex Technologies has informed BSE that Citicorp International, trustee to the 2.5 per cent foreign currency convertible Bonds issue of $70 million due 2017 convertible into equity shares of the company, had filed a case against the company on the behalf of various bond holders in the commercial court of high court of London challenging the validity of Mandatory Conversion Notice issued by the Company on 31 July 2015. Today i.e. 24 February 2016, the court has concluded that the issuance of mandatory conversation notice was valid and decided the issue in favour of the company.”

Castex Tech had issued $130 million worth of FCCBs in April 2012 followed by an issue of $70 million in September 2012. On 31 July 2015, Castex Technologies informed stock exchanges that the company’s board had agreed to “mandatorily convert” $137.4 million of these outstanding bonds into equity shares.