Tejas Networks share hit upper circuit of 5% following an announcement that Panatone Finvest Limited, an investment arm of Tata Sons, will acquire a controlling stake in the domestic telecom gear maker. Tejas Networks stock hit a fresh 52 week high of Rs 246, rising 4.99% against previous close of Rs 234.30 in early trade. Tejas Networks’ board has approved the issuance of shares and warrants to Tata Sons and its subsidiaries for an investment of ₹1,884 crore. The transaction, when warrants are fully converted to shares, will give Tatas a 43% shareholding in the company, putting them in control., according to a report in Livemint.
In a press statement, Tejas Networks said it sees a very large opportunity in the telecom sector both in India and global markets with the new cycle of investments in 5G and fiber-based broadband rollouts. The company added that it will use the proceeds to invest organically and inorganically in the research & development, sales and marketing, people, infrastructure and to enhance its manufacturing and operational capabilities.
In a communication to the BSE, Tejas Networks said,”Panatone and other certain companies of the Tata group would make a public announcement to acquire up to 4.03 crore equity shares of Tejas Networks representing 26.00% of the emerging voting capital in accordance with SEBI Takeover Regulations.”
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Sanjay Nayak, CEO and Managing Director at Tejas Networks said, “Tejas Networks was started with a vision of creating a top-tier global telecom equipment company from India. The association with Tata group will accelerate the realisation of this vision and enable us to address the large market opportunity available to us to build a financially strong global company, backed by a trusted brand.”
