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Toronto bank to raise stake in Subex

Canada's Toronto-Dominion Bank is in the process of raising its equity stake in Indian software firm Subex Systems Ltd to more than 9 per cent from 6.2 per cent, a financial daily said on Thursday.

The newspaper, citing unidentified sources, said the bank will buy around 220,000 shares at Rs 110 a share, which is about 125 per cent above the current market price.

Company officials were not immediately available for comment.

Subex shares were up 7.9 per cent at Rs 49 around 0600 GMT, while the Sensex was flat.

The report said the bank was raising its stake in lieu of an unpaid loan to Canada's Magardi Inc, whose software product assets Subex acquired in May. It did not give other details on the transaction.

Subex, which specialises in the slowdown-hit telecom sector, reported a 3 per cent drop in net profit to Rs 17.60 million in the April-June quarter, while sales rose to Rs 143.8 million from Rs 128 million.

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