Tejas stock hit the upper circuit after it rose 4.99% to Rs 246 after the announcement on the Bombay Stock Exchange.
Tejas is among the earliest telecom product companies that has built homegrown technology products in networking and optical backhaul crucial for high speed broadband.
Tata Sons, through its subsidiary Panatone Finvest Ltd, will acquire Tejas through a combination of equity and preferential issue through warrants.
Tejas Networks 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. Tejas Networks 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.
“We are excited to partner with Tejas Networks, India’s leading telecom and network company with a strong DNA of R&D. We look forward to working with the highly experienced management team of Tejas Networks and creating a full stack of globally competitive wireline and wireless products,” Saurabh Agrawal, Executive Director of Tata Sons Private Limited, said
“We are delighted about our association with the Tata group, which has a long history of building highly successful global businesses of scale. This association provides us the necessary financial resources, global relationships and strong ecosystem to innovate and scale our business, ” Mr. V Balakrishnan, Chairman of Tejas Networks, said
Sanjay Nayak, CEO and Managing Director at Tejas Networks will continue to lead the company.
“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,” Nayak said.