Castex Tech remains in red

Castex Technologies had tanked big time yesterday after news reports emerged that the company was facing trouble over its $70 million FCCB issue. The company clarified yesterday only after market hours, refuting this news.

The company clarified that these FCCBs in question were due for repayment only by Sept’17. Thus no FCCBs have neither matured nor has there been any default. It also stated that there was no trouble with its bond holders and called this news as “incorrect and non-factual”.

Yet, the market does not seem to believe this clarification as the stock continues to remain in the red, currently down almost 3.5% at Rs.171 and this s after breaching the lower circuit at Rs.168.

Castex is a subsidiary of Amtek Auto, which holds 71.2% stake. Amtek, which had breached the lower circuit yesterday at Rs.122.15 is today back in the green, post this clarification; currently up almost 4% at Rs.139.

Castex has a total debt of around Rs.5700 crore and some Rs.350 crore which is principal and interest included is the amount overdue to banks.