Subex, Global Vectra

SUBEX, a global provider of OSS solutions, seems to be on the radar of a large company, raising comparisons to Orchid Chemicals. According to market buzz, the low promoter holding of 9% has suddenly triggered large-scale buying interest in the counter. The stock was up 19% to close at Rs 99 against the market trend. The stock had touched a low of Rs 73 and has a 52-week high of Rs 610. Around 1 crore shares were traded on both the exchanges, which is equal to nearly 30% of the total shares of the company.

The buzz is that a large company is finding the valuations very attractive at these levels and has been buying in the market through various fronts and is a potential acquirer. Subex’s client list includes 32 of the world’s 50 largest telecommunications service providers and has 150 installations in over 60 countries. It is expected to be in the black from the next quarter onwards. Its book value stands at Rs 218, much below the current market price. Also, the June quarter shareholding pattern on NSE suggests minor increase in the promoters’ holding in the company.

GLOBAL Vectra Helicorp, the country’s leading provider of helicopter services to the oil and gas sector, is believed to be in talks with potential players for a minority stake dilution. A source close to the development said the company has received proposals from private equity players and FIIs, wanting to pick up a stake. It is further learnt that Global Vectra has been vetting some proposals and a final decision would be taken soon. When contacted, Global Vectra Helicorp CFO Vikram Kakaiya told ET: “Some institutions may be picking up shares from the open market.” Analysts said Global Vectra’s profit declined due to increasing ATF cost, which has impacted the aviation industry globally. The industry needs to consolidate or obtain funding to run the business. The company has recently entered into a 2-year ATF contract with RIL and ONGC to hedge its jet fuel purchases.