Stocks

Tejas Network records fresh high as Tata Sons arm picks up stake

Our Bureau Mumbai | Updated on July 29, 2021

Earlier, Panatone Finvest had signed a pact to pick up 43.3 per cent stake for about ₹1,850 crore.

The shares of Tejas Networks Ltd were locked in the 5 per cent upper circuit on Thursday as Tata Sons subsidiary, Panatone Finvest Limited, has signed a definitive agreement to pick a 43.3 per cent stake in the company for about ₹1,850 crore.

Tejas Networks opened at a fresh 52-week high of ₹246.00, up ₹11.70 or 4.99 per cent on the BSE as against the previous close of ₹234.30. The company’s shares were locked in the 5 per cent upper circuit post opening.

On the NSE, it opened at a fresh high of ₹244.35, up ₹11.60 or 4.98 per cent.

The definitive agreement between Tejas Networks and Panatone Finvest entails a preferential allotment of 1.94 crore equity shares at a price per equity share of ₹258 per share aggregating to ₹500 crore along with a preferential allotment of 3.68 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of ₹258 per equity share aggregating to ₹950 crore, which Panatone may be exercise in one or more tranches during the period commencing from the date of allotment of the warrants until the expiry of eleven months.

Further, a preferential allotment of 1.55 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of ₹258 per equity share aggregating to ₹400 crore. Panatone may exercise this in one or more tranches during the period commencing from the expiry of 12 months from the date of allotment of the warrants until the expiry of 18 months from the date of allotment. Agreement also includes the acquisition of up to 13 lakh equity shares of the Tejas Networks from certain personnel in management, at a price not exceeding ₹258 per equity share aggregating to ₹34 crore.

Panatone and other Tata group companies will also 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 under SEBI takeover regulations.

Tejas Networks will utilize the proceeds raised from the preferential allotment to invest organically and inorganically in research & development, sales and marketing, people, and infrastructure and enhance its manufacturing and operational capabilities.

Published on July 29, 2021

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