Tata Sons subsidiary Panatone will buy 43.3 per cent stake in digital telecom infrastructure firm Tejas Networks for Rs 1,850 crore.
Panatone and other 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.
Tejas Networks will utilise 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.
Saurabh Agrawal, Executive Director of Tata Sons Pvt Ltd, said: “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.”
Sanjay Nayak, CEO and Managing Director at Tejas Networks said: “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.”
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.
Tata Digital Limited, a subsidiary of Tata Sons, had acquired online grocery retailer BigBasket in May and online pharma products seller 1mg Technologies in June.