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Subex in demand on entering into pact to sell activation business to NetCracker

20 Sep 2011 Evaluate

Subex is currently trading at Rs 49.40, up by 2.50 points or 5.33% from its previous closing of Rs 46.90 on the BSE.

The scrip opened at Rs 48.55 and has touched a high and low of Rs 51.00 and Rs 48.55 respectively. So far 614943 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 94.90 on 12-Nov-2010 and a 52 week low of Rs 41.40 on 19-Aug-2011.

Last one week high and low of the scrip stood at Rs 51.00 and Rs 44.45 respectively. The current market cap of the company is Rs 325.07 crore.

The promoters holding in the company stood at 11.69% while Institutions and Non-Institutions held 21.62% and 53.43% respectively.  

Subex, a leading global provider of Business Support Systems (BSS) for Communications Service Providers (CSPs), has signed an Asset Purchase Agreement with NetCracker for the sale of its Activation business. NetCracker is a leading Telecom OSS player and part of the $40 billion NEC group. The Activation business that is being sold off consists of Service Fulfilment solution (NetProvisioning, NetOptimizer and Vector).

The company estimates its addressable market size in 2011 to be $1.56 billion and is the market leader in the global Business Optimization market which includes fraud, revenue assurance, analytics, cost management and credit risk management. The decision to sell the Activation business is an outcome of a change in Subex strategy to focus on its core products, i.e. ROC Solutions (Revenue Assurance, Fraud Management, Partner Settlement, Data Integrity Management etc.) and Managed Services.

The company is bullish on its core business line as seen in FY12 Q1 results where the Order Intake for ROC Portfolio grew 63.12% at $23 million up from $14.1 million in FY11 Q1. Net Profit for the company grew 424.46% at Rs 13.23 crore up from Rs 2.52 crore in FY11 Q1. The company's current qualified pipeline for the continuing business is worth $350 million.

Subex is committed to its core business line and will continue to invest substantially in solutions and enhancements. The company recently won the Global Telecoms Innovation Award for 2011 for its ROC Fraud Management solution and has been leaders in the Business Optimization space for four consecutive years.

Subex Share Price

9.73 0.16 (1.67%)
17-Apr-2026 16:59 View Price Chart
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