Castex Technologies locked lower circuit for 43 straight trading days; tanks 90% in two months

The stock of Amtek Group Company tanked 90% in past almost two months from Rs 362 on July 13, 2015 to Rs 40.35.

Shares of Castex Technologies (formerly known as Amtek India) have locked lower circuit for 43 straight trading days, down 5% at Rs 40.35 on the BSE.  Currently, it is trading at its lowest level since April 2011.

The stock of Amtek Group Company has tanked 90% in past almost two months from Rs 362 on July 13, 2015.

Till 11:00 AM, there were pending sell orders for a combined 13.15 million shares representing 4.3% of total equity of the company on the NSE and BSE.

On July 31, 2015, the board of directors of Castex Technologies at its meeting held on July 31, 2015, had decided to mandatorily convert all the outstanding bonds of US $80.80 million out of foreign currency convertible bonds (FCCB) Issue of US $130 million. The conversion date for conversion of bond into equity shares would be September 10, 2015, it had said.

Castex Technologies today allotted 39.40 million equity shares of Rs 2 each at the fixed conversion price of Rs 103.005 per share, thereby effecting the conversion of the outstanding bonds worth US $80.8 million out of the US $130 million 6% FCCB issue.

The company has already converted bonds of US $ 49.2 million pursuant to various conversion notices received voluntarily in the past. Hence, with the present allotment of shares pursuant to conversion of bonds of US $ 80.8 million, the issue of US $130 million 6% FCCB has fully been converted into shares of the company which has resulted in the conversion of debt of US $130 million into equity, Castex Technologies said in a BSE filing.

Meanwhile, according to PTI reports, the Securities and Exchange Board of India (Sebi) has begun a probe into alleged share price manipulation at Castex Technologies, through forced conversion of foreign bonds. CLICK HERE TO READ FULL REPORT.