Subex Azure Updates on Sponsored Secondary GDR program

Subex Azure Ltd has announced that the Company had sponsored a secondary offering of Global Depository Receipts (GDRs) i.e. a Sponsored Secondary GDR Program pursuant to Notifications issued by the Government of India and the Reserve Bank of India (RBI). The Invitation to Offer dated February 16, 2006 was for a maximum size of 9,000,000 equity shares representing 9,000,000 Global Depository Receipts.

84 applications comprising of 3,125,199 equity shares were received during the Offer Opening Period (February 19, 2007 to February 23, 2007). 8 applications comprising of 9,082 equity shares were rejected for being invalid and the balance 76 applications were accepted. 292,404 equity shares are being returned to the shareholders, on or before March 30, 2007, being shares transferred to the escrow account in excess of shares mentioned in the application form. The allocation was made in the proportion of each selling shareholders’ shareholding in the respective depositary participant account to the aggregate shareholding of all the selling shareholders who had made valid offers. The allocation is as per the "Guidelines for ADR / GDR issues by the Indian Companies Disinvestment of shares by the Indian companies in the overseas market through issue of ADRs / GDRs", issued by the RBI on November 25, 2002.

On March 26, 2007, 2,823,713 GDRs representing 2,823,713 equity shares were sold in the Sponsored Secondary GDR Offering at a price of US$ 12.76 for each GDR. The gross proceeds from the sale of the 2,823,713 GDRs representing 2,823,713 equity shares, aggregates to over US$ 36.03 million.

Standard Chartered Bank, the Escrow Agent, has initiated action to credit the unallocated shares to the demat accounts of the selling shareholders which is expected to be completed on or before March 30, 2007. Letters advising the same are being dispatched by Canbank Computer Services Ltd, the Registrar. The net proceeds after appropriating all expenses will be distributed, as per the instructions of the selling shareholders, on or before April 09, 2007, i.e., within 30 days from the date of pricing of the GDR Offering on March 26, 2007.

Source : Equity Bulls

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