Castex Technologies completes $70 mn FCCB conversion

Earlier this month, Sebi started a probe into possible rigging of firm's share price by forcibly converting foreign bonds

Castex Technologies Ltd, which is being investigated by capital market regulator Sebi over possible rigging of share price, today said it has completed conversion of its $70 million FCCB into equity.

Castex, an arm of troubled auto component maker Amtek Auto, said the allotment committee of its Board of Directors in its meeting on September 25, allotted 3,06,83,403 equity shares of Rs 2 each at the fixed conversion price of Rs 103.005 per share.

The allotment effected the conversion of the outstanding bonds worth $56.60 million out of the $70 million FCCB (foreign currency convertible bond) issue, the company said in a BSE filing.

"With the present allotment of shares pursuant to conversion of bonds of $56.60 million, the issue of $70 million FCCB has fully been converted into shares of the company which has resulted in the conversion of debt of $70 million into equity," it said.

The company said it has already converted bonds of $13.40 million pursuant to various conversion notices received voluntarily in the past.

It further said pursuant to its Mandatory Conversion Notice (MCN) of July 31, 2015, it had received conversion notices of $7.8 million and the balance $48.80 million were also being converted by the company in accordance with the MCN and the conditions laid down in the bond document.

Earlier this month, Sebi started an investigation into possible rigging of Castex Technologies' share price through forcible conversion of foreign bonds.

It was alleged by some bondholders that efforts were being made to rig the share price of Castex by forcibly asking investors to convert their bonds.

The company, however, did not make any comment on the Sebi probe.