Tejas Networks share price touched a 52-week high of Rs 246 and was locked in a 5 percent upper circuit on July 29 after it announced that Panatone Finvest, an arm of Tata Sons, will acquire a controlling stake in the company for nearly Rs 1,890 crore in a multi-step deal.
As part of a definitive agreement, the Bengaluru-based telecom product major will make a preferential allotment of 1.94 crore equity shares at a price of Rs 258 a 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 percent of the emerging voting capital in accordance with SEBI takeover regulations, the company said.
At 10:45 hours, Tejas Networks was quoting at Rs 246.00, up Rs 11.70, or 4.99 percent on the BSE.
There were pending buy orders of 2,526,523 shares, with no sellers available.