UTI, Intel Cap to get Subex pie via share conversion

Subex Systems, the Bangalore-based telecom software product company, has announced that its board will consider conversion of preference shares held by Unit Trust of India and Intel Capital Corporation. The board is scheduled to meet on April 7.

The board will consider conversion of 612,245 redeemable optionally convertible cumulative preference shares (ROCCPS) held by Unit Trust of India and 478,500 ROCCPS held by Intel Capital Corporation into equity shares of the company at 1:1 ratio.

The prices of these shares have already been fixed earlier at Rs 98 a share. Both Intel and UTI had were given the option to buy the shares, a year ago, at this price. Today, these companies have decided to exercise this option, owing to Subex's encouraging performance.

After the buy back of these shares, Intel will have a 10 per cent stake in Subex, while UTI will hold 7 per cent.

The promoters will hold 43 per cent and 6 per cent will be held by the Toronto Dominion Bank. Employees will hold 4 per cent and the remaining 30 per cent will be held by the public.

Subex develops software which addresses fraud management and leakage of revenue among telecom service providers. All telecom service providers in India are Subex's customers. With 65 installations worldwide, this company is all set to dethrone Hewlett-Packard as the leading player in this space during this fiscal.

Subex is planning to close the current fiscal with a topline of Rs 80 crore and a PAT of Rs 18 crore. While Rs 35 crore is expected to come from products, nearly the same amount is expected from onsite consulting practice.