Tejas Networks, maker of optical networking products, has filed draft papers with capital markets regulator SEBI to raise funds through an initial public offering.

The IPO comprises fresh issue of shares worth Rs 450 crore and an offer for sale of 1.27 crore scrips by shareholders, according to draft red herring prospectus.

Shareholders who would sell stake in the initial public offer (IPO), include Cascade Capital Management Mauritius, Intel Capital (Cayman) Corporation, India Industrial Growth Fund Ltd and Sandstone Private Investments.

Also, the company plans to raise about Rs 150 crore by selling 60 lakh shares ahead of the IPO. If the pre-IPO placement is completed, the company would reduce the IPO size.

Proceeds of the issue would be used for capital expenditure towards payment of salaries and wages for research and development team, working capital requirement and general corporate purposes.

“In addition, our company expects to achieve the benefits of listing of the equity shares on the stock exchanges which, we believe, will result in the enhancement of our company’s brand and creation of a public market for our equity shares,” Tejas Networks said.

Tejas Networks is optical networking products company. It caters to telecommunications operators, internet service providers, utilities, defence and government entities in over 60 countries.

Axis Capital, Citigroup Global Markets India Pvt Ltd, Edelweiss Financial Services and Nomura Financial Advisory and Securities (India) Pvt Ltd are managing the IPO. The equity shares are proposed to be listed on the BSE and the NSE.

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