Thursday, 10 September 2015

SEBI unlikely to block Castex Tech's FCCB conversion: Report

The bondholders have urged SEBI to block the impending conversion of two FCCB tranches worth US$200mn into equity that falls on Thursday and on 25th September.


Amtek
Capital market regulator SEBI is unlikely to intervene in the ongoing standoff between Amtek Group company Castex Technologies Ltd. and the holders of its foreign currency convertible bonds (FCCBs), according to media reports.

However, SEBI is reportedly looking into alleged manipulation of the stock price of Castex Tech.

The bondholders have urged SEBI to block the impending conversion of two FCCB tranches worth US$200mn into equity that falls on Thursday and on 25th September.

They allege that the stock of Castex Tech was rigged up, triggering the mandatory conversion of all outstanding FCCBs.

Shares of Castex rose from INR 41.40 in March to all-time high of INR 361.85 on 13th July on BSE. From its peak, the stock continued to fall by daily maximum limit of 5%. On Wednesday, the stock closed at INR 42.45.

1 comment:

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