Shares of Tejas Networks
were locked in upper circuit of 5 per cent at Rs 246 on the BSE in Thursday's session after the company announced that Panatone Finvest Limited, a subsidiary of Tata Sons, will buy a 43.3 per cent stake in the telecom related services firm for Rs 1,850 crore.
The stock of Tejas Networks
hit upper circuit for the fifth straight day. It was trading at its 52-week high level and has rallied 28 per cent in the past one week. In comparison, the S&P BSE Sensex was down 0.28 per cent during the same period. A combined around 55,000 equity shares have changed hands on the counter and there were pending buy orders for 6.37 million shares on the NSE and BSE as of 10:54 am.
The company will also allot 36.8 million warrants, each carrying a right to subscribe to 1 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.
Panatone Finvest will acquire up to 1.3 million 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, the company said. CLICK HERE FOR FULL PRESS RELEASE
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 will utilise the proceeds raised from the preferential allotment
to invest organically and inorganically in 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 purpose.
Panatone is Tata Sons' investment arm and also the promoter entity of Tata Communications.
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.