Tejas Networks share hit life high for 3rd straight session; stock up 21% in 4 days - Know reason here

Tejas Networks share hit an upper circuit of 5 per cent and touched a new life high to Rs 271.2 per share for the third straight session today, as the Tata Sons investment subsidiary Panatone Finvest to pick up 43.3 per cent stake in the global optical, broadband, and data networking products company.

Tejas Networks on Wednesday announced that it has executed definitive agreements with (Panatone), a subsidiary of Tata Sons Private Limited, the company said in the filing to exchanges.

Panatone is Tata Sons' investment arm and also the promoter entity of Tata Communications.

It said, along with some other companies of the Tata Group, Panatone would make a public announcement to acquire up to 40.3 million equity shares of Tejas Networks representing 26 per cent of the voting capital according to SEBI's takeover regulations.

Since the announcement, the shares of Tejas Networks have risen over 21 per cent in the last four sessions, while it has soared over 50 per cent in the last one month.

Tejas Networks will utilize the proceeds raised from Tata Sons arm to invest organically, inorganically in the research & development, sales and marketing, people, infrastructure and to enhance its manufacturing and operational capabilities and for other general corporate purposes, it had said.

Kotak Mahindra Capital Company Limited is acting as the manager to the open offer and Khaitan & Co is acting as the legal advisor to the transaction, Tejas Networks said in a statement.

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, the statement read.