Subex up 9% after preferential allotment to promoters

Subex has moved up 9% to Rs 67 levels after the board of directors of the company issued 4 million equity shares to M/s Woodbridge Consultants, a promoter group entity, at a price of Rs 80 per equity share. The company has raised Rs 32 crore through this allotment.

The proceeds of the issue will mainly be utilized to reduce some of the liabilities like bank loans. Consequent to the allotment, the promoters/promoter group holding in the company will increase to 14.92%.

The company develops software products and provides software consulting services primarily in the telecommunications sector.

The stock opened at Rs 62 and has seen almost four fold rise in volumes. As many as 764,000 shares have changed hands so far on the BSE as compared to 205,000 shares that were traded in last two weeks.