Subex, a global
provider of Business Support Systems (BSS) for Communications Service Providers
(CSPs), has decided Board approval to raise upto $135 million.
This is subject to the approval of the shareholders at
the extra-ordinary general meeting of the members to be held on December 28,
2011.
The
company has two tranches of foreign currency convertible bonds (FCCBs) with a
total redemption value of $131 million, which it needs to redeem in March 2012
and the current fund raising program is to meet that obligation.
We intend to raise
the required amount through debt or equity or a combination of the two,” said
Subash Menon, founder chairman, managing director and CEO, Subex.
Subex has been
recording strong growth and profitability in its Continuing Product Business
(Business Optimization or RMS). In Q2, revenue for this segment grew 26 percent
y-o-y. Consequent to the sale of its Activation products, the company has put
more emphasize in Business Optimization or RMS. This segment, which is the area
in which the company has been operating traditionally, is the fastest growing
segment in telecom BSS space.
During Q2 FY12, the Product Revenue for the company stood
at Rs 1,177.65 million accounting for 91.37 percent of the
consolidated revenue. The
company posted a Product EBITDA of Rs 382 million i.e. 32.41 percent while the EBITDA for Continuing
Product Business (Business Optimization or RMS) was Rs 452 i.e. 41.7 percent.
By Telecomlead.com Team
editor@telecomlead.com