Panatone and other certain companies of the Tata group would make a public announcement to acquire up to 4.03 crore equity shares of Tejas Networks
Tejas Networks had recently announced that it has executed definitive agreements with Panatone Finvest Limited (Panatone), a subsidiary of Tata Sons Private Limited (TATA). The agreements entail preferential allotment of 1.94 crore equity shares at a price per equity share of Rs 258 per share aggregating to RS 500 crore.
“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. I am fully committed to making this a success and am excited about the next phase of our journey,” Sanjay Nayak, CEO and Managing Director at Tejas Networks had stated.
Sanjay Nayak, as per the agreements signed between the two shall continue as Managing Director and Chief Executive Officer to lead Tejas Networks along with the existing management team through the next phase of growth. Panatone and other certain companies of the Tata group would 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 in accordance with SEBI Takeover Regulations.
“We are delighted about our association with the Tata group, which has a long history of building highly successful global businesses of scale. This association provides us the necessary financial resources, global relationships and strong ecosystem to innovate and scale our business,” noted V Balakrishnan, Chairman of Tejas Networks.
Tejas Networks, as per a recent investor call, will utilize 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.
“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,” Saurabh Agrawal, Executive Director of Tata Sons Private Limited had said.
