Subex, the Indian business assurance vendor, wants a fresh injection of USD12mn of capital by issuing new shares to the following private investment funds.
- USD6mn to Qvt Singapore Fund Pte. Ltd
- USD3.9mn to Tonbridge (Mauritius) Limited
- USD2.1mn to Leeds (Mauritius) Limited
If it goes ahead, the issuance will dilute the company’s share capital by between 8 and 11 percent. Subex’s board gave their approval on 24th March; now it is up to members to approve the decision through a postal ballot.
CEO Surjeet Singh told NDTV why the company desires additional investment:
… in order to get to the next phase of Subex, we need to invest more in the business. Our portfolio, while very important to all the CFOs of telcos, still needs to be enhanced at multiple levels.
Singh noted that the business had been investing in research and development relating to analytics, IoT security and use of the cloud. He mentioned a desire to expand Subex’s sales team and the company’s geographical reach. Singh also said Subex would look at potential takeover targets:
…and also we have to be acquisitive going forward, to really make Subex continue its innovative path.
Subex’s share price has enjoyed better performance in recent months. The share price bumped up again immediately before the board meeting, but has partly slid back since.
You can watch the whole of Surjeet Singh’s interview with NDTV below.