Tejas Networks share price spiked 5 percent, hitting upper circuit on BSE on August 3, a day after Tata Sons' subsidiary Panatone Finvest picked up an 8 percent stake as part of the Tata group's plan to acquire a controlling stake in the domestic telecom equipment maker.
"This is to inform that Panatone Finvest Limited have acquired 75,00,000 equity shares of Tejas Networks Limited on August 2, 2021 through the stock exchange settlement process," Panatone said in an exchange filing.
Panatone Finvest picked the stake for over Rs 193 crore through an open market transaction. The shares were bought from Samena Spectrum Co, which held a little over 10 percent stake in the telecom equipment maker as of June 2021, at an average price of Rs 258 a share.
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Tata Sons has agreed to acquire a controlling stake in Tejas Network for nearly Rs 1,890 crore in a multi-step deal. Under the agreement, Tejas Networks will make a preferential allotment of 1.94 crore equity shares for 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.
The stock was trading at Rs 284.75, up Rs 13.55, or 5.00 percent. It has touched a 52-week high of Rs 284.75. There were pending buy orders of 1,316,648 shares, with no sellers available.
Under the deal, 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.
With inputs from PTI
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