Mumbai: Castex Technologies Ltd, a subsidiary of Amtek Auto Ltd, on Thursday informed the stock exchanges that it has allotted equity shares to investors following a conversion of its foreign currency convertible bonds (FCCBs).
“The allotment committee of the board of directors of the company in their meeting held on 10 September 2015, allotted 39.4 million equity shares of ₹ 2 each at the fixed conversion price of ₹ 103.005 per share, thereby effecting the conversion of the outstanding bonds worth $80.8 million out of the $130 million 6% FCCB issue,” said the company in a notice to the exchanges.
On 31 July, the company had informed investors that FCCBs issued in 2012-13 would be mandatorily converted as per the bond agreement. Bond holders, however, had approached the Securities and Exchange Board of India (Sebi) urging the capital markets regulator to block the conversion. They allege that the stock of the company was manipulated to rise, triggering the mandatory conversion of all outstanding bonds.
Shares of Castex rose sharply from ₹ 41.40 in March to touch a peak of ₹ 361.85 on 13 July on BSE. From its high, the stock continued to fall 5% every day. On Wednesday, the shares closed at ₹ 42.45 each.
On Thursday, Mint reported that Sebi is unlikely to intervene in the ongoing standoff between Castex Technologies Ltd and FCCB holders.
At 10.53am, Castex Technologies was trading 5% lower at ₹ 40.35 per share on BSE, while the benchmark Sensex was down 1.3% at 25,398.05 points.
