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Tata Sons arm Panatone Finvest picks 8% stake in Tejas Networks via open market transaction

Panatone purchased 75 lakh shares, amounting to an 8% stake, of Tejas Networks. The shares were bought at an average price of Rs 258, aggregating the transaction size to Rs 193.5 crore

Tejas Network (Representative Image)

In an interesting stake sale, Sons arm on Monday announced to pick up an 8% stake in domestic telecom equipment maker for over Rs 193 crore through an open market transaction.

According to the block deal data available with NSE, Panatone purchased 75 lakh shares, amounting to an 8% stake, of Tejas Networks. The shares were bought at an average price of Rs 258, aggregating the transaction size to Rs 193.5 crore.

The shares were offloaded by Samena Spectrum Co, which held a little over 10 per cent stake in the telecom equipment maker as of June 2021. Following the transaction, Tejas Networks had hit a 5% upper circuit to touch a record high of Rs 269.35 apiece on NSE.

On July 31, Panatone Finvest announced that it has purchased 16.8 per cent equity shares of Tejas Networks for around Rs 404 crore. Tejas Networks on July 28 had said an arm of Tata Sons will acquire a 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 of an offer to the Tejas Networks shareholders on July 29. Under the agreement, Tejas Networks will make a preferential allotment of 1.94 crore equity shares for 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.

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