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Tata Sons Arm Acquires 16.8% Stake In Tejas Networks

The announcement on July 29 had mentioned 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.

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Tata Sons arm Panatone Finvest has purchased 16.8 per cent equity shares of domestic telecom equipment maker Tejas Networks for around Rs 404 crore, according to a regulatory filing.

Panatone acquired shares through stock exchange which includes sale of shares from key management people - Tejas Networks CEO and Managing Director Sanjay Nayak, chief technology officer Kumar N Sivarajan, executive director and COO Arnob Roy.

'This is to inform you that we, Panatone Finvest Limited, has acquired 1,56,97,667 equity shares of Tejas Networks Limited on July 30, 2021,' Panatone Finvest said in a regulatory filing.

Tejas Networks on July 28 had said an arm of Tata Sons will acquire controlling stake in it for nearly Rs 1,890 crore in a multi-step deal.

Panatone along with Akashastha Technologies and Tata Sons Private Limited had made a public announcement for an offer to the Tejas Networks shareholders on July 29.

According to the filing, '1,56,97,667 equity shares representing 16.8 per cent of the total outstanding number of equity shares of the Target Company as on June 30, 2021' have been acquired by Panatone.

Under the agreement, Tejas Networks 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.

The announcement on July 29 had mentioned 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.

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. 

(PTI)


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