Amtek Auto pledges additional 4.37% stake in subsidiary

Debt-ridden Amtek Auto has pledged an additional 4.37 per cent stake in its subsidiary Castex Technologies towards short-term borrowing needs.

Taken together, more than 1.56 crore shares were pledged with Allahabad Bank and State Bank of Bikaner & Jaipur on September 21 and September 28, respectively, according to regulatory filings by Castex.

While the Delhi-based auto component maker pledged 96,27,000 shares with Allahabad Bank, 60,50,000 were marked with State Bank of Bikaner & Jaipur.

Last month, Castex, which is being investigated by capital markets regulator Sebi over possible rigging of share price, had completed conversion of its $70 million FCCB into equity.

In September, 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.