The announcement was made today, 9 February 2010.
Meanwhile, the BSE Sensex was up 42.21 points, or 0.26%, to 15,977.82.
On BSE, 10.15 lakh shares were traded in the counter as against an average daily volume of 3.30 lakh shares in the past one quarter.
The stock hit a high of Rs 65.90 and a low of Rs 61.10 so far during the day. The stock had hit a 52-week high of Rs 101.50 on 29 December 2009 and a 52-week low of Rs 18.85 on 12 March 2009.
The stock had underperformed the market over the past one month till 8 February 2010, falling 34.01% compared with the Sensex's 9.15% fall. It underperformed the market in past one quarter, sliding 19.32% as against 1.38% decline in the Sensex.
The small-cap software company has an equity capital of Rs 47.60 crore. Face value per share is Rs 10.
The current price of Rs 64 discounts the company's Q3 December 2009 annualised EPS of Rs 47.63, by a PE multiple of 1.34.
The shares, with a lock-in period of three years, are being placed at Rs 80 per share. A maximum of 60 lakh shares will be issued as part of this placement, the company said in a statement.
Subash Menon is the chairman, managing director and chief executive officer of Subex. The proceeds of the issue will mainly be utilised by the company to reduce some of the liabilities like bank loans.
The issue price is higher than the Securities and Exchange Board of India (Sebi) floor price that is applicable for this issue, it added.
Subex's net profit rose 504.7% to Rs 46.68 crore on a 1.1% decline in sales to Rs 80.61 crore in Q3 December 2009 over Q2 September 2009.
Subex develops software products and provides software consulting services. The company's products primarily focus on providing software solutions for clients in the telecommunications sector.
Promoters have pledged 25.08 lakh shares, or 6.40% of the equity capital of the company. The total promoter shareholding in the company is 10.47% (end December 2009).