Tata Sons subsidiary to buy 43.3% stake in Tejas Networks for Rs 1,850 cr

Panatone Finvest Limited, a subsidiary of Tata Sons, will buy a 43.3 per cent stake in Tejas Networks, a global optical, broadband and data networking products company, for Rs 1,850 crore.

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

Tejas Networks said Panatone and some other companies of the Tata Group 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 take-over regulations.

"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 said in a statement.

Sanjay Nayak, CEO and Managing Director at Tejas Networks said: “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 continue as Managing Director and Chief Executive Officer to lead Tejas Networks along with the existing management team through the next phase of growth.