Tejas Networks shares jump 5%; hit upper circuit as Tata Sons arm to acquire controlling stake

PTIUpdated: Friday, July 30, 2021, 12:53 AM IST
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Tejas Networks on Thursday said an arm of Tata Sons will acquire controlling stake in it for nearly Rs 1,890 crore in a multi-step deal. | pexels

Shares of Tejas Networks on Thursday jumped 5 per cent to hit its upper circuit after the telecom and network firm said an arm of Tata Sons will acquire controlling stake in it for nearly Rs 1,890 crore in a multi-step deal.

The stock rose by 4.99 per cent to Rs 246 -- its upper circuit limit -- on BSE.

On NSE, it gained 4.98 per cent to Rs 244.35 -- its upper circuit.

Tejas Networks on Thursday said an arm of Tata Sons will acquire controlling stake in it for nearly Rs 1,890 crore in a multi-step deal.

The company has executed definitive agreements with Panatone Finvest, a subsidiary of Tata Sons (Tata group holding firm), it said in a statement.

As part of the agreement, the company will make a preferential allotment of 1.94 crore equity shares at a price per equity share of Rs 258 per share aggregating to Rs 500 crore to Panatone.

There will also be another preferential allotment of 3.68 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 per equity share aggregating to Rs 950 crore.

Further, a preferential allotment of 1.55 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 per equity share aggregating to Rs 400 crore, will also be made.

Panatone will also acquire up to 13 lakh equity shares of the Tejas Networks from certain personnel in management, at a price not exceeding Rs 258 per equity share aggregating to Rs 34 crore, subject to such terms and conditions as mutually agreed between the parties, the statement said.

Subsequently, Panatone and other certain companies of the Tata group will make an open offer 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, the company said.

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