There are only sellers on the counter of Castex Technologies. For the 40th consecutive session, the stock hit the 5% lower circuit today at Rs.46.95.

This is a Amtek group company and like the flagship, it too is facing music from its foreign bondholders. This company’s problem is even graver as the foreign bondholders are alleging the Indian issuer company manipulated its stock price so as to trigger a mandatory conversion of the bonds into equity. The bondholders have complained to the regulators and the exchanges and they are now threatening legal action in the UK and in India.

In 2012 Castex raised nearly USD 200 million via two tranches of foreign currency convertible bonds (FCCBs). The company issued 6 percent convertible bonds and 2.5 percent convertible bonds, both of a five year tenure and due for conversion in 2017. The conversion price was fixed at Rs 103 a share.