Tejas Networks was locked in an upper circuit of 5% at Rs 258.30 after the company announced that Panatone Finvest will acquire a 43.3% stake in the telecom related services firm for Rs 1,850 crore.
Tejas Networks on Thursday announced that it has executed definitive agreements with Panatone Finvest (Panatone). The company will allot 1.94 crore equity shares at Rs 258 per share, aggregating to Rs 500 crore on a preferential basis. Panatone Finvest is a subsidiary of Tata Sons.
The company will also allot 3.68 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 per equity share aggregating to Rs 950 crore, which may be exercised by Panatone in one or more tranches during the period commencing from the date of allotment of the warrants until the expiry of 11 months from the date of allotment of the warrant.
Pantone will acquire up to 13 lakh equity shares of the Tejas Networks from certain personnel in management, at a price not exceeding Rs 258 per equity share aggregating to Rs 34 crore, subject to such terms and conditions as mutually agreed between the parties.
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% of the emerging voting capital in accordance with SEBI Takeover Regulations. The open offer is made at a price of Rs 258 per share.
The telecom part maker said it will utilize the proceeds raised from the preferential allotment to invest organically and inorganically in the research & development, sales and marketing, people, infrastructure and to enhance its manufacturing and operational capabilities to cater to this large market opportunity, and for other general corporate purposes.
Sanjay Nayak, CEO and MD of 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.
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Shares of Tejas Networks have rallied for seven consecutive trading sessions. The counter has jumped 40.4% in seven trading sessions from its previous closing low of Rs 183.90 posted on 20 July 2021.
Tejas Networks designs, develops and sells high-performance networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries.
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