It has been a tremendous start of the year for Subash Menon, boss and founder of Subex. He has negotiated his way out of the looming overhang of FCCBs, has slimmed the business after the takeover of Syndesis and has got Subex back into profit. So how does he follow up that hat trick of successes? By putting his money where his mouth is and showing his faith in his own business. Like other shareholders, Subash will see his stake in the company diluted by the deal with owners of the FCCBs. To address this, he has bought newly-issued shares, as he explains in this interview. You can also see the video of the interview here. Buying shares is good – it shows confidence in his company – but Subash went a step further still. The shares will be bought at a premium to the market of 30%. In other words, he is buying not at the current market rate, but at the same rate as the FCCB holders agreed as the conversion price for their bonds. It is a magnanimous gesture, an impeccable example of good governance, and a supreme statement about the future of Subex. I take my hat off to Subash Menon.
More good news for Subex followed soon after, with the announcement of a multi-million dollar order for their cost management software by a North American Tier 1 operator. To complete the second hat trick, it looks like the majority of analysts are upbeat about the future share price of Subex, which has had its ups and downs. They are not all positive, but some analysts are very positive about Subex’s future; see here, here and here.