Tejas Network, which had closed yesterday at Rs.234.30, opened today at its 5% UC of the day at Rs.246, where it remains frozen.
The stock hit the roof on news that Panatone Finvest Limited, a subsidiary of Tata Sons, will be buying a 43.3% stake in the company. This cost Tata’s Rs.1850 crore.
Tejas Networks is a global optical, broadband and data networking products company while Panatone is Tata Sons' investment arm and also the promoter entity of Tata Communications.
Tejas Networks will utilize the proceeds raised from the preferential allotment to invest organically and inorganically in the research & development, sales and marketing, people, infrastructure and to enhance its manufacturing and operational capabilities to cater to this large market opportunity, and for other general corporate purpose.