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Subash Menon, Founder of Subex Ltd, today resigned as the Managing Director and Chief Executive Officer as the company grapples with mounting debt.
Menon will continue as a non-independent director of the company. Subex, which provides fraud detection software to telecom companies, is yet to make a decision on the new MD and CEO.
The company board met for an hour today at Subex’s office in Bangalore.
“With the restructuring of the foreign currency convertible bonds (FCCBs) complete, I have decided to focus on my other business interests and hence this move,” Menon said.
Focus on start-up
Menon would focus on his start-up firm Kivar Environ, founded three years ago. Kivar Environ is a waste- and water management company, with more than Rs 100 crore in annual revenues.
The company, one of a handful of Indian product companies, made a slew of acquisitions and one of them, Azure, was one of the largest acquisitions made by an Indian software company in 2006 for $140 million. The following year, it acquired Canadian telecom solutions provider Syndesis for $164.5 million (Rs 728 crore) in an all-cash deal.
The company had to raise cash from the market and as the markets crashed later, the company had to use its FCCBs for funds. In July, the company converted $127.72 million of FCCBs after it received approvals from a majority of bond-holders. In the June quarter, Subex posted a net loss of Rs 4 crore.
Elara Capital, an investor in the company, sold its entire 1.43 per cent stake in Subex, it said today. Investors were not convinced about the strategy of the company going forward.
On Friday, Subex shares closed 4.07 per cent lower at Rs 13.19 on the BSE.
>venkatesh.ganesh @thehindu.co.in
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