Bengaluru, July 29 (SocialNews.XYZ) Panatone Finvest Limited, a subsidiary of Tata Sons Private Ltd plans to acquire controlling stake in telecom equipment maker Tejas Networks.
Panatone Finvest will buy a 43.3 per cent stake in Tejas Networks for Rs 1,850 crore and along with other Tata Group companies, Panatone would make a public announcement to acquire up to another 26 per cent stake in Tejas.
Tejas Networks has executed definitive agreements with Panatone.
In a regulatory filing, Tejas said that 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.
Tejas Networks will utilise 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 purpose.
Saurabh Agrawal, Executive Director of Tata Sons Pvt Ltd, said: "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."
Sanjay Nayak, CEO and Managing Director at Tejas Networks said: "We are privileged to be part of the Tata group, which has a rich legacy as India's most visible and trusted business brand. 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."
Sanjay Nayak will continue as Managing Director and Chief Executive Officer to lead Tejas Networks along with the existing management team through the next phase of growth.
Shares of Tejas Networks touched the 5 per cent upper circuit post the announcement.
Around 10.55 p.m., its shares were at Rs 246, higher by Rs 11.70 or 4.99 per cent from its previous close.
Source: IANS
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