New Delhi (Anish Yande): Tejas Networks shares rise to the upper circuit of 5% today after the announcement of Panatone Finvest Limited, a subsidiary of Tata Sons Private Limited acquiring a controlling stake in the company.
Tejas Networks shares rose to a fresh 52 week high of Rs 246, rising 4.99% against previous close of Rs 234.30. The shares gained by 4.99% on BSE today. The share has gained 33.77% within the last week. The market cap of the Tejas Networks rose to Rs 2,302 crore on BSE.
Panatone Finvest to acquire 43.3 per cent stake in Tejas Networks:
A subsidiary of Tata Sons, Panatone Finvest Limited, would acquire a 43.3 per cent stake in Tejas Networks. The stake in the broadband and data networking products company would be acquired for Rs 1,850 crore.
Tejas Networks would allot 19.4 million equity shares at Rs 258 per share, which amounts to Rs 500 crore on a preferential basis. The networking products company would also allot 36.8 million warrants at Rs 258 per equity share, aggregating to Rs 950 crore
Under the acquisition, the shares could be allocated in one or more tranches during the period from the date of allotment of the warrants until the expiry of 11 months from the date of allotment of the warrant.
Tejas Networks to also acquire 13 lakh equity shares:
The subsidiary of Tata Sons would also acquire up to 13 lakh equity shares of Tejas Networks from the company’s personnel at a price up to Rs 258 per equity share aggregating to Rs 34 crore.
Panatone Finvest and other companies of the Tata Group will issue an open offer for acquiring up to 4.03 crore equity shares which consist of 26 per cent of the voting capital in accordance with SEBI Takeover Regulations.
The manager of the open offer is Kotak Mahindra Capital Company Limited. Khaitan & Co is acting as the legal advisor to the transaction. Sanjay Nayak will continue in the role of Managing Director and Chief Executive Officer at Tejas Networks along with the rest of the management team.
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