Panatone Finvest, a Tata Sons subsidiary, has signed a definite agreement to pick up 43.3 percent stake in Tejas Networks for about Rs 1,850 crore.
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.
Tejas Networks revealed that its CEO Sanjay Nayak will continue to lead Tejas Networks along with the existing management team through the next phase of growth.
Saurabh Agrawal, Executive Director of Tata Sons, said: “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.”
Tejas Networks reported consolidated revenue of Rs 144.3 crore (+86.4 percent) and a net profit Rs 7.6 crore for Q1-FY22. Tejas Networks order book has increased to Rs 701 crore.