The Hindu Business Line : Subex to raise $200 m for buy-outs

Close on the heels of revealing its plans to sponsor a Global Depository Receipts (GDR) issue, Subex Azure Ltd said on Friday that its board has approved a proposal to raise up to $200 million through a GDR/share/Foreign Currency Convertible Bonds. The Subex board also approved a proposal to increase the authorised share capital from Rs 40 crore to Rs 50 crore.

"The latest fund raising proposal is in addition to our earlier plan of a sponsored GDR issue," said Mr Subash Menon, Chairman and CEO, Subex Azure Ltd. "We are gearing ourselves for a possible acquisitions in the future," Mr Menon told Business Line from Canada.

Subex is looking at strengthening its presence in the OSS (Operations Support Systems) space, where it already has a strong foothold in the revenue maximisation segment. "We will be looking at acquiring both products and customers, but do not have any concrete plans at present," Mr Menon said.

Some of the areas within the OSS space, where Subex could possibly look at expanding its presence are the service assurance, services management, services fulfilment, fault management, performance management, test and measurement among others.

The Subex board also approved a proposal to increase the cap on investment by foreign institutional investors in the company to 100 per cent of the paid-up capital of the company. At present about 33.5 per cent of Subex's shares are held by overseas investors, while promoters own about 11.6 per cent.

Subex has convened an extraordinary general meeting to seek the shareholders approval for its plans on January 29. Subex shares closed 1.3 per cent lower at Rs 649 on the BSE on Friday.

As part of its sponsored GDR issue, Subex plans to issue up to 90 lakh shares to increase its overseas float, thereby providing an exit option for some of the existing investors. The company is eyeing one of the European exchanges to list its GDR issue over the next three months. The proposed sponsored issue, when fully subscribed, would increase the company's overseas float to a little over 50 per cent.

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