Tejas Networks to merge Saankhya Labs, Saankhya Strategic Electronics under NCLT norms

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Tejas Networks has announced the merger of Saankhya Labs Private Limited and Saankhya Strategic Electronics Private Limited through a process approved by the National Company Law Tribunal (NCLT).

Tejas Networks acquired 64.40 percent of shares of Saankhya Labs Private Limited in July 2022.

The Company will issue 3,871,084 equity shares of Tejas Networks to Saankhya Labs shareholders holding 35.60 percent equity shares, using the swap ratio of 112 shares of Tejas Networks for 100 shares of Saankhya Labs, according to a statement from the company.

The stocks of Tejas Networks were trading up 2.24 percent at Rs 676.50 at at 9:40am on September 30 on the NSE.

The company expects the amalgamation will help Tejas expand the wireless network with the help of 5G Open Ran (ORAN), a 5G cellular broadcast and satellite communication product. It will also help Tejas improve its expertise in fabless semiconductor chip designs.

According to a Business Standard report, Tejas Networks acquired 93,571 equity shares of Saankhya Labs (Saankhya) at a price of Rs 454.19 per equity share through a secondary purchase last August.

The proposed consolidation is yet to receive its mandatory approval from markets regulator Securities and Exchange Board of India (Sebi), shareholders of the company, Saankhya Labs, Saankhya Strategic, NCLT and other statutory and regulatory bodies.