Intel arm may up stake in Subex via pref conversion

Intel Capital Corp, the investment arm of US-based Intel Corp may increase its stake in Bangalore-based Subex Systems Ltd. by converting 479,500 preference shares into equity shares in the ratio of 1:1.

Subex Tuesday said its board will meet Monday to consider the conversion. Intel Capital holds 10 per cent stake in Subex.

However, the price at which the conversion is likely to take place is not known. The Subex stock has been active recently on positive news flows.

The shares, which ended up 3 per cent at Rs 326.65 on the National Stock Exchange today, have gained over 30 per cent since the end of June. In the same period, the NSE-Nifty has risen around 10 per cent.

In August, Subex said it would acquire "certain assets and liabilities" related to the Fraud Centurion product from US-based Lightbridge Inc. In July, its board approved raising the foreign institutional investors' investment limit up to 74 per cent of the company's paid-up equity capital.

The company had bought Alcatel's fraud management unit for $3 million and will get 30 new clients from this acquisition. The acquisition made Subex the biggest fraud management vendor.