Tata Sons' arm Panatone Finvest acquires 8% stake in Tejas Networks

Tata Sons arm Panatone Finvest on Monday picked up an 8 per cent stake in domestic telecom equipment maker Tejas Networks for over Rs 193 crore through an open market transaction.

According to the block deal data available with NSE, Panatone purchased 75 lakh shares, amounting to an 8 per cent stake, of Tejas Networks.

The shares were bought at an average price of Rs 258, aggregating the transaction size to Rs 193.5 crore.

The shares were offloaded by Samena Spectrum Co, which held a little over 10 per cent stake in the telecom equipment maker as of June 2021.

Following the transaction, Tejas Networks had hit a 5 per cent upper circuit to touch a record high of Rs 269.35 apiece on NSE.

On July 31, Panatone Finvest announced that it has purchased 16.8 per cent equity shares of Tejas Networks for around Rs 404 crore.

Tejas Networks on July 28 had said an arm of Tata Sons will acquire a controlling stake in it for nearly Rs 1,890 crore in a multi-step deal.

Panatone along with Akashastha Technologies and Tata Sons Private Limited had made a public announcement of an offer to the Tejas Networks shareholders on July 29.

Under the agreement, Tejas Networks will make a preferential allotment of 1.94 crore equity shares for Rs 258 per share, aggregating to Rs 500 crore to Panatone.

There will also be another preferential allotment of 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.

The announcement on July 29 had mentioned a preferential allotment of 1.55 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 400 crore.

Under the deal, Panatone will also 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.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel