Panatone Finvest Limited, a subsidiary of Tata Sons, will purchase a 43.3 per cent stake in Tejas Networks for Rs 1,850 crore.
Panatone is Tata Sons’ funding arm and in addition the promoter entity of Tata Communications.
Tejas Networks mentioned Panatone and another firms of the Tata Group would make a public announcement to accumulate as much as 40.3 million fairness shares of Tejas Networks representing 26 per cent of the voting capital in line with SEBI’s take-over laws.
“Tejas Networks 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 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,” it mentioned in a press release.
Sanjay Nayak, CEO and Managing Director at Tejas Networks mentioned: “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 will proceed as Managing Director and Chief Executive Officer to steer Tejas Networks together with the present administration workforce by means of the following section of development.