Subex Systems Ltd, a Bangalore-based software product company, which addresses fraud management and revenue maximisation for telecom companies, is planning to raise $15 million through foreign currency convertible bonds during the next 2-3 months.
An approval to raise this amount will be sought in the EGM scheduled for May 31, 2004.
While there are various options ahead of the company to raise this amount, a company statement said, "The total amount raised through securities should not exceed $15 million."
The company is likely to use this cash to fund its acquisitions, which is likely to happen during this fiscal.
Besides the fact that it is targeting companies that operate in the same space as Subex, the company officials have not revealed any further details.
The EGM will also consider the company's intention to increase its authorised share capital to Rs 32.1 crore from the current Rs 30.78 crore (Rs 307.8 million). Approvals will also be sought for increasing the borrowing powers of the Board of Directors of the company to Rs 75 crore (Rs 750 million).
Recently, Subex decided to convert the preferential shares to Unit Trust of India and Intel Capital Corporation.
In the board meeting held on April 7, 2004, approvals were given to convert 612,245 redeemable optionally convertible cumulative preference shares held by the Unit Trust of India and 478,500 ROCCPS held by Intel Capital Corporation to equity shares of the company at 1:1 ratio.
The prices of these shares were fixed earlier at Rs 98 per share. Both Intel and UTI were given the option to buy the shares, a year ago, at this price.
After the buy back of these shares, Intel holds a 10 per cent stake in Subex, while UTI holds 7 per cent. The promoters hold 43 per cent and 6 per cent is held by the Toronto Dominion Bank. Employees hold 4 per cent and the remaining 30 per cent is held by the public.
Revenues from products account for 44 per cent of its topline, up from 7 per cent in 2000. In the next 3 years, it is expected to account for nearly 80 per cent. Subex is 155-strong.