Tejas Network, which had closed yesterday at Rs.404.70, opened itself at its 5% UC of the day at Rs.424.90, where it now remains frozen. Its 52-week high is at Rs.570.20.
The stock price zoomed up 5%, reacting to the news that it will acquire a 64.40% stake in wireless solutions company Saankhya Labs for Rs 284 crore n an all-cash deal.
Post this, Saankhya will become a majority owned subsidiary of the company and this deal is expected to close in the next 90 days.
Tejas also intends to acquire the balance 35.6% of Saankhya Labs through a merger process or a secondary acquisition.
This acquisition of Saankhya is likely to enhance Tejas Networks' wireless offerings and add to the customer base in India and international markets.