Subex to raise up to Rs. 48 cr

BANGALORE, INDIA: Subex Limited, a provider of operations and business support systems (OSS/BSS), announced today that it is raising up to Rs. 48 crore through a Preferential Placement with an investment company of its promoter Subash Menon.

The shares, with a lock in period of one year, are being placed exclusively with the promoter at the rate of Rs. 80 per share. A maximum of six million shares will be issued as part of this placement. The issue price is higher than the SEBI floor price that is applicable for this issue.

Subex had recently restructured a majority of outstanding FCCBs for conversion at Rs. 80.31 resulting in reduction of shareholding of Menon. The current issue will make up for some of this reduction, the company said in a media release.

“The primary objective of this Preferential Placement is to increase my stake in the company. The fact that I am infusing funds into the company at a price that is higher than the SEBI floor price shows my conviction in the future prospects of the company,” said Subash Menon, chairman, managing director and CEO, Subex Ltd.

The proceeds of the issue will mainly be utilized by the company to reduce some of the liabilities like bank loans. This preferential placement that has been approved by the Board of Directors will have to be approved by the shareholders before completion of the process within the next 30 to 45 days, the release added.