Subex launches New FCCB issue

Subex Ltd has launched up to U.S.$131,100,000 5.70 per cent. secured convertible bonds due 2017 ("New FCCBs"), pursuant to a cashless exchange offer for Existing FCCBs (as defined below) ("Exchange Offer"), approved the floor price of shares to be issued on conversion of the FCCBs, approved the opening of the proposed Issue and amending the terms of the Existing FCCBs.

The Board has authorized the issue of cashless exchange offer, involing issuance of FCCBs due July 2017, in relation to outstanding US$180 million 2% FCCBs due July 9, 2012 and US$98.7 million 5% FCCBs due July 9, 2012 ("Existing FCCBs").

The Board has adopted the floor price in respect of the conversion of the new FCCBs, based on the pricing formula as prescribed by the Ministry of Finance, Government of India, pursuant to its circular dated November 27, 2008, amending the FCCB scheme, as Rs.22.79 ("Floor Price") per equity share of Rs.10 each of the company and has taken note that the relevant date for this purpose is June 13, 2012.

The Subex Ltd stock closed the day at Rs.23.20, up by Rs.0.15 or 0.65%. The stock hit an intraday high of Rs.23.80 and low of Rs.22.90.

The total traded quantity was 0.73 lakhs compared to 2 week average of 0.80 lakhs.

Source : Equity Bulls

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