Subex falls as co seeks FCCB payment extension

In a highly volatile session on Tuesday, shares of Subex fell substantially amid concerns over the company's inability to repay foreign currency convertible bondholders by the original maturity date.

Outstanding FCCBs worth $280 million are due for repayment on Friday but the company has sought extension of the maturity period by four months till July 9, 2012.

Subex shares hit the 10% upper circuit at Rs 32.5 in early morning trading amid generally bullish market conditions. But, the stock came off subsequently partly due to weakening of the sentiment over the outcome of the UP elections.

Selling pressure intensified in the mid-session after the news of extension of the maturity period reached the market. Subex eventually ended over 3% down at Rs 28.8 on significantly higher volumes of 11.7 lakh shares, compared with the two-week average of 1.4 lakh on the BSE.

"We are working out a solution to repay the FCCB holders. We are planning a mix of debt and equity to raise funds for the purpose," said Ramanathan J, vice-president (finance) & company secretary, Subex.