Tejas Networks hits 5 per cent upper circuit after Tata Sons subsidiary plans to acquire up to 26 per cent stake

Panatone and other certain companies of Tata Group will soon make a public announcement to acquire up to 4.03 crore equity shares of Tejas Networks, representing 26 per cent of the emerging voting capital in accordance with SEBI Takeover Regulations.

Tejas Networks recently announced a strategic investment from Panatone Finvest Limited, a subsidiary of Tata Sons Private Limited, for a 26 per cent controlling stake in the company.  

Tejas Networks has confirmed that it has executed definitive agreements for the same, which will entail preferential allotment of equity shares, warrants & acquisition of up to 13 lakh equity shares from certain personnel in the company’s management. The preferential allotment has been approved by the board of directors of Tejas Networks while the transactions are subject to shareholders’ approval. 

Panatone and other certain companies of Tata Group will soon make a public announcement to acquire up to 4.03 crore equity shares of Tejas Networks, representing 26 per cent of the emerging voting capital in accordance with SEBI Takeover Regulations. 

Tejas Networks said in a filing with BSE that it will be utilising the proceeds raised from the preferential allotment to invest organically and inorganically in the research & development, infrastructure as well as to enhance its manufacturing & operational capabilities to cater to this large market opportunity.  

Tejas Networks designs, develops & sells high-performance networking products to telecommunications service providers, internet service providers, utilities, defence, and government entities in over 75 countries. 

The shares of Tejas Networks opened at a 5 per cent upper circuit during the early market hours, setting a 52-week high of Rs 246 on BSE.