Subex Ltd, a global business support systems provider, today said the Reserve Bank has approved the restructuring proposal of its outstanding foreign currency convertible bonds (FCCBs) involving a combination of debt and equity.
It will shortly launch a cashless exchange offer, wherein the current FCCBs will be exchanged for new FCCBs with a maturity period of five years and fresh equity, the company said in a statement. Reacting to the news, the stock shot up 10 percent at Rs 25.90.
Subash Menon, Subex's founder chairman, MD and CEO said with the RBI approval, the company can reach a final and conclusive solution to the FCCB issue and all concerns about the financial stability of the company will be put to rest. He also told CNBC- TV18 in an interview that the current FCCBs, which are due on 9 July, will be replaced by a set of new FCCBs. Expecting about 15 to 20 percent growth in the topline in FY13, he added "The overall indebtedness of the company will come down to the extent of conversion to equity, as soon as we issue the new bonds come July. We are certainly expecting interest saving."
“This restructuring proposal has been formulated with the active support of our existing bond holders whom we have been closely working with.
“We are confident that with their continued support, we will be able to complete the restructuring in the next 45-60 days,” Menon said.
“We are confident of better times ahead and will continue to work hard to sustain our market leadership in BSS (business support systems),” he said.