India-based BSS provider Subex has approval from its board to raise up to $135 million (U.S.) pending the OK from its shareholders Monday.
The company has two tranches of Foreign Currency Convertible Bonds (FCCBs) with a total redemption value of USD $131 million, which it needs to redeem in March 2012. The current fundraising project 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. “We are clearly committed towards our customers and investors and are confident of the future of the business seeing the increasing traction for the company’s industry leading ROC and Managed Services offering."
Subex has shown strong growth and profitability in its Continuing Product Business (Business Optimization or RMS). In Q2, revenue for this segment grew 26 percent year over year. After selling its activation products, Subex 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.
