Buzzing stock: Subex Limited on a restructuring mode
By Sanket Dewarkar |
8/22/2017 2:17 PM Tuesday
Subex Limited, which posted poor Q1 numbers with decline in profits of 49.14%, has planned to restructure itself as per a decision taken by its board of directors. The company has planned to diversify its business and focus on each of its verticals with higher operational efficiencies, which will lead to maximisation of its revenue.
The Revenue Maximisation Solutions (the RMS business) would be transferred on ‘ongoing concern’ basis to its subsidiary, Subex Assurance LLP (Subex Assurance), by way of a capital contribution made by the company to Subex Assurance.
The Subex secure and analytics’ solutions and related business carried out by the company (the ‘digital business’) would be transferred to Subex Digital LLP (Subex Digital). After the restructuring the company would directly hold over 99.99% of both capital and share in profit and losses of both Subex Assurance LLP and Subex Digital LLP.
Currently the company belongs to the industry of computers - software. Its total operating revenue is Rs 324.41 crore and equity capital is Rs 506.91 crore for the year ended March 31, 2017.
During Tuesday’s trade this small-cap stock opened at Rs 8.70 and touched a high and low of Rs 9.16 and Rs 8.65 per share, respectively, and on 1136 hours the stock was quoting at Rs 8.77 per share.
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