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Calcutta, April 8: Intel Capital — the strategic investment arm of Intel Corporation — has acquired a 5.67 per cent stake in Bangalore-based telecom software company, Subex Systems.

Subex Systems told stock exchanges today that Intel Capital had acquired 4.78 lakh shares by converting preference shares into equity shares.

Intel Corporation acknowledges the investment in Subex Systems and refers to it as a ‘portfolio company’.

At current market price, Intel Capital’s stake in the Bangalore-based firm is valued at Rs 15.82 crore.

Shares of Subex Systems closed at Rs 330 on the National Stock Exchange today, marginally higher than yesterday.

Founded in the early 1990s, Intel Capital is a strategic investor, and typically commits money in private companies that support Intel’s product initiatives and business thrusts.

It has invested in a range of companies across the world. Intel Capital has three dedicated funds that have invested over a $1 billion so far.

Intel’s 5.67 per cent stake in Subex Systems takes the combined foreign holding in the company to a little over 20.5 per cent.

Foreign institutional investors had a combined stake of 14.62 per cent at the end of the December-quarter. The founders of Subex Systems own over 55 per cent of the company’s shares.

The company offers comprehensive solutions to telecom companies and helps them maximise revenues.

Subex has worked extensively with the mobile phone operators in India and abroad. It has branches in the United States, Canada, China, Cyprus and South Africa.

The company earned Rs 70 crore in revenues in the last financial year. Its income in the first three quarters of 2003-04 was Rs 63 crore. Its net profit during the period under review was Rs 10.17 crore, and in the three quarters up to December, Rs 12.88 crore.